Projects Are Identified and Selected in the

question 20

Multiple Choice

Projects are identified and selected in the

• A) initiating phase.
• B) planning phase.
• C) performing phase.
• D) closing phase.

---

Definitions:

Economically Efficient

A situation in which resources are allocated in a way that maximizes the net benefit to society.

Marginal Private Benefit

Marginal Private Benefit is the additional benefit or satisfaction received by consumers or producers for consuming or producing one more unit of a good or service.

Marginal Private Cost

The cost incurred by a firm or individual resulting from producing one more unit of a good, excluding externalities or effects on third parties.

External Benefits

External benefits refer to the positive effects or advantages that a product or activity imparts on individuals or society who are not directly involved in the production or consumption of the good.