Which of the Following Is True of Cost-Benefit Analysis

question 83

Multiple Choice

Which of the following is true of cost-benefit analysis?

• A)It supports only short-run decision making.
• B)It considers quantitative costs and benefits,not qualitative.
• C)It conveys that the benefits from a project should exceed its costs.
• D)It supports only long-run decision making.

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price level in a market.

Inelastic Demand

A situation where the quantity demanded of a good or service changes very little when its price changes.

Luxury

Goods or services that are considered superior in quality and are often expensive, catering to a more affluent consumer base.

Necessity

A good or service that is considered essential for survival, such as food, shelter, and healthcare.