Governments use Cost-Benefit Analysis to ensure resources are used efficiently and public policies provide the greatest benefit.

Question

BlackTom AI · Accepted Answer

The statement presents a core idea behind Cost-Benefit Analysis (CBA) in public policy evaluation, which is to compare costs and benefits of a policy to determine whether resources are used efficiently and whether the policy yields the greatest net social benefit.
Option True: This option aligns with the standard purpose of CBA in economics and public administration. By quantifying (where possible) both costs and benefits, policymakers aim to maximize net benefits, ensure efficient resource allocation, and justify policy choices that provide the greatest overall value to society.
Option False: This would be incorrect because it suggests that governments do not use CBA to guide resource use or to maximize benefits. In practice, CBA is a common tool used precisely for those goals, even though there are limitations (valuation challenges, distributional concerns, and uncertainty). The statement does not acknowledge these limitations, so as a factual claim about the general use of CBA, False would misstate the purpose.
In summary, the assertion reflects the primary intent of cost-benefit evaluations in government decision-making: to promote efficient use of resources and maximize overall public benefit, while recognizing that real-world analyses may face practical constraints and caveats.

25_4 ECN4010A Economics of Public Policy

Governments use Cost-Benefit Analysis to ensure resources are used efficiently and public policies provide the greatest benefit.

查看解析

登录即可查看完整答案

类似问题

What are the criteria is typically not used to compare costs and benefits in cost-benefit analysis? (multiple answers possible)

What are the criteria is typically not used to compare costs and benefits in cost-benefit analysis? (multiple answers possible)

Cost-benefit analysis considers WTP as a factor in decision-making.

Cost-benefit analysis considers WTP as a factor in decision-making.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单