Cost Benefit Analysis Quiz

CBA always considers only monetary costs and benefits.
1. True
2. False
Cost-benefit analysis (CBA) is primarily used to evaluate the economic efficiency of a project or policy.
1. True
2. False
Discounting is the process of converting future costs and benefits to their present values.
1. True
2. False
A project with a negative net present value (NPV) should always be implemented.
1. True
2. False
Intangible benefits, such as improved environmental quality, are not considered in CBA.
1. True
2. False
Opportunity cost is the value of the next best alternative forgone.
1. True
2. False
The choice of discount rate can significantly impact the outcome of a CBA.
1. True
2. False
CBA is a purely objective process, free from any value judgments.
1. True
2. False
A benefit-cost ratio (BCR) greater than 1 suggests that the project's benefits exceed its costs.
1. True
2. False
Cost-benefit analysis (CBA) is primarily used to evaluate the economic efficiency of a project or policy.
1. True
2. False
The present value of a future benefit is higher with a higher discount rate.
1. True
2. False