Question

What is a cost-benefit analysis?

A. An analysis that weighs the cost of different solutions against the benefits that will result from the solution
B. A calculation of the amount of land and other resources needed to support one person in one country
C. An economic principle that states the more demand there is for something with a limited supply, the higher the price will be
D. An evaluation of how the environment might change if it is impacted in some way

Answer 1

A cost-benefit analysis is a process used to evaluate the potential costs and benefits of a decision, project, or policy. It involves comparing the costs associated with a particular action or option against the benefits that would result from it. Cost-benefit analysis is used in various fields to make informed decisions.

Step-by-step explanation:

A cost-benefit analysis is a process used to evaluate the potential costs and benefits of a decision, project, or policy. It involves comparing the costs associated with a particular action or option against the benefits that would result from it. The goal is to determine whether the benefits outweigh the costs and whether the action or option is worth pursuing.

For example, let's consider the decision to build a new community pool. In a cost-benefit analysis, the costs could include the construction and maintenance costs of the pool, while the benefits may include increased recreation opportunities, improved community health, and economic benefits from increased tourism. By comparing the costs and benefits, decision-makers can assess whether the pool project is a worthwhile investment.

Cost-benefit analysis is used in various fields, including economics, public policy, environmental science, and business. It provides a framework for making informed decisions by considering both quantitative and qualitative factors and weighing the potential outcomes.