Answer:
All the options are correct. A, B, C and D.
Explanation:
A. The future matters more than the past when determining which costs and benefits: economic trends, are based on the behavior of tendencies in the past, projections for the future, are expected to at least behave as they did previously. Profit rates are of course preferred, but past tendencies dictate the minimum range they are willing to have. Since Kayne’s theory (1935) the determination of cost-benefit analysis performed by governments as well as enterprises, is based in the preferences (past and future ones) of the families and the election they make of the combination consumption-saving and the behavior of the enterprises in their decision making process of investment.
B. There are both monetary and non-monetary considerations that must be taken into account.
Every economic analysis must have in mind direct and indirect costs. Direct costs, are those directly involved in the project, i.e. tax payment, cost of the insurance in a health plan; but also, indirect costs, such as will people have transportation available for a person from home to the hospital, are there roads around? Where will the family will stay and how much will have to pay for accommodation and feeding while a patient is in hospital? For how long the patient will be in recovery, medical leave will be provided, will be able to be productive again afterwards?
C. Individuals consider the benefits to themselves and the costs to others.
regardless of the sector (healthcare, selling a product, industry) somebody will earn money (and have a benefit) that will be impacted into other’s payment, the cost the recipient will pay then, must be reasonable for the product or service offered, otherwise, they won’t pay for it an will look for a second (cheaper or better in quality) option. From an ethical point of view, even though some authors refer that “<em>human beings are by nature selfish</em>” (Adam smith) there are also others (J. Stuart Mill) that refer: “<em>Every duly educated human being has a sincere interest in the public good</em>”, therefore, we look after our benefit, but also have in consideration somehow others costs.
D. It is more important to calculate costs accurately than to calculate benefits accurately.
Costs and benefits are both as important, calculating costs is as important as calculating benefits. The cost of production of a product must be precise, to estimate how much profit can be generated and in turn, the accuracy of the estimate of the benefit, determine the feasibility to continue the business and profitability of it, whether a product or a service is offered, from a point of view of the cost-benefit analysis
