Which of the Following Is a Drawback of Cost-Benefit Analysis

question 69

Multiple Choice

Which of the following is a drawback of cost-benefit analysis?

• A) Costs and benefits that accrue over time cannot be assessed.
• B) It may be difficult to measure costs and benefits in monetary terms.
• C) The costs of an activity are usually greater than the benefits.
• D) Cost-benefit analysis can only be used to assess government interventions.

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Definitions:

Economic Theory

A set of principles and frameworks designed to explain and predict patterns in economic activities, consumption, production, and trade, among other aspects.

Reduction in Prices

A decrease in the cost of goods or services, typically resulting from factors like increased supply, decreased demand, or governmental intervention.

Recessionary Conditions

Economic circumstances characterized by a decline in GDP, employment, and trade lasting for a period of time.