Policy Evaluation, to Be Effective, Must Account for ALL Costs

question 8

True/False

Policy evaluation, to be effective, must account for ALL costs and benefits - not just the intended costs and benefits.

---

Definitions:

Cost Of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Labor

The employment of human physical and psychological skills in the production process of goods and services.

Capital

Financial assets or the financial value of assets, such as cash and securities, or fixed assets like buildings and machinery, that are used in producing goods or services.

Short-Run

A period of time during which at least one of a firm's inputs is fixed.