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

question 160

Multiple Choice

Which of the following statements is true of cost-benefit analysis?
(i) the best way to ascertain the value people put on a good is to ask them
(ii) the analysis should take into account only explicit costs and benefits
(iii) cost-benefit analyses often attempt to value goods for which there are a wide range of social impacts

• A)(i)
• B)(ii) and (iii)
• C)(iii)
• D)(i), (ii) and (iii)

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Definitions:

Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products to ensure protection and rights for consumers.

Full Warranty

A comprehensive guarantee that a manufacturer or seller makes regarding the condition of its product, including a promise to repair or replace defective items.

Consumer Goods

Products that are purchased by individuals for personal or household use, rather than by businesses or for industrial purposes.

Oral Express Warranties

Verbal promises made by a seller to a buyer about the nature or quality of the product being sold.