Which of the Following Statements Concerning Cost-Benefit Analysis Is True

question 93

Multiple Choice

Which of the following statements concerning cost-benefit analysis is true?

• A)Large potential benefits,regardless of their time horizon,always justify government intervention.
• B)Large potential costs,regardless of their time horizon,always preclude government intervention.
• C)Though benefits from a government policy can be accurately measured,costs are usually impossible to quantify.
• D)Cost-benefit analysis can be used effectively by private firms but should not be used in the public sector.
• E)Though it is often difficult to estimate costs and benefits with precision,cost-benefit analysis can be useful in determining whether to implement a given government policy.

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