A Cost-Benefit Analysis Is A(n)

question 7

Multiple Choice

A cost-benefit analysis is a(n)

• A) tool to evaluate the effects of projected price increases
• B) procedure to evaluate the costs and benefits of programs in which benefits are greater than the costs
• C) procedure to evaluate the direct costs of a product
• D) both b and c

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Definitions:

Rent

The payment made by a tenant to a landlord for the use of a property, room, or apartment for a specified period.

Depreciation

Accounting method of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and use over time.

Indirect Business Taxes

Taxes levied on goods and services rather than on income or profits, such as sales tax or value-added tax, ultimately passed on to consumers in the form of higher prices.

National Income

The total amount of money earned within a country, including wages, rent, interest, and profits.