Question

Cost-benefit analysis attempts to Multiple Choice determine whether it is better to cut government expenditures or reduce taxes. compare the benefits and costs associated with any economic project or activity. compare the relative desirability of alternative distributions of income. compare the real worth, rather than the market values, of various goods and services.

Answer 1

Answer:

compare the benefits and costs associated with any economic project or activity.

Explanation:

Cost benefit analysis is a method that is used to make the best option of projects to undertake by comparing the benefits against the cost of the project.

When the benefits outweighs the cost then it is a good endeavour. However when the cost is higher than the benefits then the project is not profitable and not a good action to be taken.

For example if the benefit from building a bridge is $30 million and the cost of building it is $15 million, based on the cost benefit analysis this is a good project to undertake.