There Is Some Debate About Whether Secondary Benefits Should Be

question 29

Essay

There is some debate about whether secondary benefits should be considered when assessing public policy proposals. Identify two reasons why secondary benefits might be excluded from a benefit-cost analysis of proposed environmental policy.

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

External Failure Costs

Costs associated with defects that are found after the product reaches the customer, including returns, repairs, and lost sales.

Schedule Of Activity

A detailed plan or timetable of expected or required actions and events over a given period.

Costs

An amount that must be paid or spent to buy or obtain something.