Cost-benefit analysis is important to determine therole of government in our economy becauseSelect one:a. cost-benefit analysis identifies the possiblegains to society from government provisionof a particular good.O b. cost-benefit analysis is the best tool toidentify market failures.O c. markets for private goods cannoteffectively assign costs and benefits.O d. the government should provide all goodsfor which the benefits exceed the costs.

Answered: Cost-benefit analysis is important to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cost-benefit analysis is important to determine the
role of government in our economy because
Select one:
a. cost-benefit analysis identifies the possible
gains to society from government provision
of a particular good.
O b. cost-benefit analysis is the best tool to
identify market failures.
O c. markets for private goods cannot
effectively assign costs and benefits.
O d. the government should provide all goods
for which the benefits exceed the costs.

Expert Solution

Step 1

Cost-Benefit Analysis is defined as a process which is used to measure the benefits of a decision that is made by subtracting the cost from that decision.

it helps compare the estimated costs of a project or projects and makes decision making easier by analyzing these benefits and costs.

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