What Is Difficult About Using Cost-Benefit Analysis to Estimate the Level

question 8

Multiple Choice

What is difficult about using cost-benefit analysis to estimate the level of a public good that will maximize social welfare?

• A)The government cannot use cost-benefit analysis to estimate this.
• B)It is difficult to estimate the marginal costs of supplying a public good.
• C)It is difficult to estimate the marginal social benefits of supplying a public good.
• D)The costs of using it may make the provision of the public good prohibitive.

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Definitions:

Primary Diagnosis

The diagnosis given as the primary reason for the patient seeking care.

Acute Illness

A disease or condition that comes on suddenly and is typically short in duration, often requiring immediate care or treatment.

ICD-9 Code

A system used in healthcare to classify and code diagnoses, symptoms, and procedures, replaced by the ICD-10.

Annual Physical Exam

A yearly health check-up with a healthcare provider intended to prevent health problems and maintain wellness.