Cost-Benefit Analysis Is Important to Determine the Role of Government

question 133

Multiple Choice

Cost-benefit analysis is important to determine the role of government in our economy because

• A)the government should provide all goods for which the benefits exceed the costs.
• B)cost-benefit analysis identifies the possible gains to society from government provision of a particular good.
• C)markets for private goods cannot effectively assign costs and benefits.
• D)cost-benefit analysis is the best tool to identify market failures.

---

Definitions:

Neurogenesis

The process of generating new neurons in the brain, contributing to brain plasticity and repair.

Antidepressants

A class of drugs primarily used to treat depression, but also prescribed for other conditions, functioning by altering chemical pathways in the brain associated with mood.

Serotonin

A neurotransmitter involved in regulating mood, digestion, sleep, and other bodily functions.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, influencing heart rate, blood pressure, and glucose metabolism.