Question

Which of the following is a true statement about cost-benefit analysis? 1) helps decision makers formulate environmental legislation. 2) balances estimated costs with potential environmental benefits. 3) is never used in issues involving human health and safety. 4) is really only applicable in the field of economics.

Answer 1

Answer:

The correct answer is 2) balances estimated costs with potential environmental benefits.

Explanation:

One of the advantages of using cost-benefit analysis method is that it enables us to understand the cost incurred against the benefits gained from a project. It helps to make a decision whether to continue a particular project or drop it if costs of a project is greater than its anticipated benefits.  The statement 2 is True.