Final answer:
The process of comparing a program's benefits to its net savings is known as b. cost-benefit analysis, which weighs the costs against the benefits on a T-shaped chart and is essential for making informed decisions about complex issues.
Step-by-step explanation:
The process of comparing a program's benefits to its net saving is called cost-benefit analysis. This method involves creating a T-shaped chart where the costs are listed on one side and the benefits on the other. The costs include money, effort, and other sacrifices made to achieve something else, while benefits refer to what is gained from a decision, including monetary gains, time, experiences, and other improvements. A cost-benefit analysis is especially useful for making decisions about complex issues like crime reduction programs, where it's important to measure the societal advantages of reduced crime against the program's cost.
Additionally, marginal analysis is a concept closely tied to cost-benefit analysis. Marginal analysis is used to determine if the extra cost of adding an additional unit (marginal cost) is outweighed by the extra benefit of adding the same unit (marginal benefit). If marginal costs exceed marginal benefits, resources could be allocated more efficiently elsewhere in the economy.