Each of the Following Explains Why Cost-Benefit Analysis Is Difficult

question 397

Multiple Choice

Each of the following explains why cost-benefit analysis is difficult except

• A)there is no price with which to judge the value of a public good.
• B)surveys are often biased and unreliable.
• C)it is difficult to identify all factors that influence costs and benefits of public goods.
• D)government projects rarely have sufficient funding to complete them on time.

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Definitions:

Cost of Funds

The interest rate that financial institutions and other lenders charge each other for the use of money, as in loans or deposits.

Income

The financial gain received by an individual or entity, typically measured on a per year basis, from work, investments, or other sources.

Average Total Cost Curve

A graphical representation that shows the average cost of production per unit at different levels of output.

Technological Advance

The development and application of new technologies and techniques that improve the efficiency and productivity of manufacturing, services, or processes.