Why Is Cost-Benefit Analysis Important in Determining the Role of Government

question 31

Multiple Choice

Why is cost-benefit analysis important in determining the role of government in our economy

• A)Cost-benefit analysis helps government identify all goods in which benefits exceed costs.
• B)Cost-benefit analysis identifies the possible gains to society from government provision of a particular good.
• C)Cost-benefit analysis identifies the private good markets from the public good markets.
• D)Cost-benefit analysis identifies market failure.

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Definitions:

Local Situation

The specific conditions and characteristics of a particular place or area, often considering social, economic, or environmental aspects.

Technological Developments

Advances in technology that lead to new products, processes, or improvements in existing products or operations.

Market Trends

The general direction in which the market moves, influenced by factors like consumer behavior, technological advancements, and economic conditions.

Organisational Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization.