This quiz works best with JavaScript enabled. Home > Economics > Welfare Economics > Cost Benefit Analysis > Cost Benefit Analysis – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Contingent valuation method uses hypothetical scenarios to determine monetary valuations of effects of health intervention A) True. B) False. C) Not sure. D) None of above. Show Answer Correct Answer: A) True. 2. From where does the government get its revenue? A) Only from businesses who earn a profit. B) Revenue comes from the taxes collected by citizens living in a city or state. C) Everyone donates 10% of their income to the government. D) None of above. Show Answer Correct Answer: B) Revenue comes from the taxes collected by citizens living in a city or state. 3. What is the principle behind time value of money? A) Cash in and cash out. B) Money tomorrow is worth more than money today. C) Money today is worth more than money tomorrow. D) Projects with more risk have a lower discount rate. Show Answer Correct Answer: C) Money today is worth more than money tomorrow. 4. There is little to no risk associated with investing money in professional education. A) True. B) False. Show Answer Correct Answer: B) False. 5. The definition of economic cost is A) The sum of all explicit and implicit costs of the business firm. B) The difference between all implicit and explicit costs of the business firm. C) All the dollar costs employers pay for all inputs purchased. D) The opportunity cost of all inputs minus the dollar cost of those inputs. Show Answer Correct Answer: A) The sum of all explicit and implicit costs of the business firm. 6. Cost benefit analysis is ..... A) Confusing and I don't understand it. B) Confusing but I'm understanding it. C) Important and i'm confident with it. D) None of above. Show Answer Correct Answer: A) Confusing and I don't understand it. 7. What do businesses utilise when making decisions among various projects? A) Trade off analysis. B) Cost Benefit analysis. C) Profit margin analysis. D) None of above. Show Answer Correct Answer: B) Cost Benefit analysis. 8. What is the alternative to this discussion? A) Sofia SARS Antigen FIA. B) Pure Clinical Assessment. C) Swab Antigen. D) None of above. Show Answer Correct Answer: A) Sofia SARS Antigen FIA. 9. The following is an alternative answer/solution/fair decision to the problem regarding forest concession rights permits (HPH), namely whether or not it is necessary to grant a certain forest area to a company, except A) Not giving permission to clear forest at that location. B) Refusing to give permission at that location but giving permission at another location and transporting the results to the location the entrepreneur wants. C) Refusing to give permits in desired locations but allowing forest exploitation in various other areas and sending to locations desired by entrepreneurs. D) Prohibits forest exploitation in all places and permits the development of industrial forest plantations in various places. Show Answer Correct Answer: A) Not giving permission to clear forest at that location. 10. In terms of today's lesson, what is a benefit? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: B) A positive outcome. 11. Unemployment benefits, Social Security, and Disability are all examples of services that are paid for by ..... A) Projects. B) Taxes. C) Services. D) Consumers. Show Answer Correct Answer: B) Taxes. 12. The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision? A) Vacation. B) Swimming pool. C) Backyard. D) Money. Show Answer Correct Answer: A) Vacation. 13. Which is NOT an example of a cost? A) Increased expenses. B) Increased efficiency. C) Money for giving employee benefits. D) Money for giving employees wages. Show Answer Correct Answer: B) Increased efficiency. 14. If calculations for all types of costs and benefits in CBA analysis are difficult, CBA analysis calculations can be done using the method? A) Econometrics. B) Tabel Input-Output (IO). C) Data Envelopment Analysis (DEA). D) Analytical Hierarchy Process (AHP). Show Answer Correct Answer: D) Analytical Hierarchy Process (AHP). 15. The purpose of sensitivity analysis in CBA is, except A) To assess what will happen to the results of the feasibility analysis of business activities if there are changes to the cost/benefit calculation. B) To find the feasibility of business activities based on past conditions. C) Testing the robustness of the results of a model or system to uncertainty. D) Increase understanding of the relationship between input and output variables in a system or model. Show Answer Correct Answer: B) To find the feasibility of business activities based on past conditions. 16. When the marginal cost is LESS than the marginal benefit of doing something, you should ..... A) Not do it. B) Do it. Show Answer Correct Answer: B) Do it. 17. Every state has the same sales tax rate/percentage. A) True. B) False. Show Answer Correct Answer: B) False. 18. What is a benefit that is difficult to assess financially? A) Intangibles. B) Increased profits. C) Decreased expenses. D) If it can't be assessed financially it's not a benefit. Show Answer Correct Answer: A) Intangibles. 19. You decide to spend all the money you saved on a new pair of expensive shoes. What is the cost of your choice? A) New shoes. B) All the money you saved. C) Showing off your new shoes. D) None of above. Show Answer Correct Answer: B) All the money you saved. 20. Marginal costs is A) The cost added by producing one additional unit. B) The change in revenue added by producing one additional unit. C) The additional cost. D) None of above. Show Answer Correct Answer: A) The cost added by producing one additional unit. ← PreviousNext →Related QuizzesWelfare Economics QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 3Cost Benefit Analysis Quiz 4Cost Benefit Analysis Quiz 5Cost Benefit Analysis Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books