Cost-Benefit Analysis Cannot Be Applied to Collective or Public Choice

question 75

True/False

Cost-benefit analysis cannot be applied to collective or public choice decision-making.

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Definitions:

Common Resource

A resource like air or water that is available to all but can be depleted by overuse.

Nonrival

A characteristic of a good or service indicating that one person's consumption does not diminish the availability of that good for consumption by others.

Market Economy

An economy in which decisions about production and consumption are made by individual producers and consumers.

Public Goods

Items that cannot be restricted to non-payers and whose consumption by one individual does not diminish availability to others; these are accessible to all, regardless of payment.