Which of the following statements is FALSE? • Choice 1 of 4:Cost-benefit analysis allows the scale of the activity to either increase or decrease. • Choice 2 of 4:Both cost-benefit and cost-effectiveness analyses construe the policy problem as involving some production relationship between resources and objectives. • Choice 3 of 4:If the Governor asks you to find the lowest-cost way for the state of Colorado to meet a minimum required air pollution abatement level, she is asking you for a cost-effectiveness analysis. • Choice 4 of 4:If the Mayor tells you he will set aside a $20 million budget spending to reduce homelessness and asks you for an analysis of what option would be the most efficient, he is asking for a cost-benefit analysis.
Which of the following statements is FALSE? • Choice 1 of 4:Cost-benefit analysis allows the scale of the activity to either increase or decrease. • Choice 2 of 4:Both cost-benefit and cost-effectiveness analyses construe the policy problem as involving some production relationship between resources and objectives. • Choice 3 of 4:If the Governor asks you to find the lowest-cost way for the state of Colorado to meet a minimum required air pollution abatement level, she is asking you for a cost-effectiveness analysis. • Choice 4 of 4:If the Mayor tells you he will set aside a $20 million budget spending to reduce homelessness and asks you for an analysis of what option would be the most efficient, he is asking for a cost-benefit analysis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Which of the following statements is FALSE?
• Choice 1 of 4:Cost-benefit analysis allows the scale of the activity to either increase or decrease.
• Choice 2 of 4:Both cost-benefit and cost-effectiveness analyses construe the policy problem as involving some
production relationship between resources and objectives.
• Choice 3 of 4:If the Governor asks you to find the lowest-cost way for the state of Colorado to meet a minimum
required air pollution abatement level, she is asking you for a cost-effectiveness analysis.
• Choice 4 of 4:If the Mayor tells you he will set aside a $20 million budget spending to reduce homelessness and
asks you for an analysis of what option would be the most efficient, he is asking for a cost-benefit analysis.
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