Benefit/Cost Analysis Quiz
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Questions and Answers

What is the primary purpose of a Benefit/Cost Analysis?

  • To compare the monetary benefits and costs of a project or decision (correct)
  • To assess the technological feasibility of a project
  • To evaluate the social implications of a decision
  • To analyze the environmental impact of a project
  • What does the Benefit/Cost Ratio indicate?

  • The technical complexity of a project
  • The social acceptance of a decision
  • The efficiency of a project in generating benefits relative to its costs (correct)
  • The environmental sustainability of a project
  • In Benefit/Cost Analysis, what does 'discounting' refer to?

  • Ignoring the potential risks associated with a decision
  • Adjusting future costs and benefits to their present value (correct)
  • Increasing the projected benefits of a project
  • Eliminating certain costs from the analysis
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