This quiz works best with JavaScript enabled. Home > Economics > Welfare Economics > Cost Benefit Analysis > Cost Benefit Analysis – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The national government gets most of its money from ..... A) Sales tax. B) Property tax. C) Income tax. D) School tax. Show Answer Correct Answer: C) Income tax. 2. National Parks are preserved with the help of ..... A) Animals. B) Taxes. C) Roads. D) Schools. Show Answer Correct Answer: B) Taxes. 3. Which of the following is a real-life application of cost benefit analysis? A) Calculating the nutritional value of a food item. B) Determining the profitability of a new project or evaluating the economic impact of a new policy or regulation. C) Evaluating the emotional impact of a marketing campaign. D) Determining the best color for a new product. Show Answer Correct Answer: B) Determining the profitability of a new project or evaluating the economic impact of a new policy or regulation. 4. Emelia has been invited to a sleepover at Chloe's house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe's house. What is the opportunity cost of her decision? A) Seeing her favorite band. B) Spending time at a friends house. C) Chloe's house. D) A sleepover. Show Answer Correct Answer: A) Seeing her favorite band. 5. The total cost of Jeremiah's certificate program was $ 3, 500. He expects to earn an additional $ 2, 500 per year with the certificate. What is his break-even point? A) 6 months. B) 9 months. C) 1.4 years. D) 2 years. Show Answer Correct Answer: C) 1.4 years. 6. Minimum amount necessary for an individual to forego some good is called ..... A) WTB. B) WTA. C) WTP. D) WTY. Show Answer Correct Answer: B) WTA. 7. After conducting an ..... of the situation, the mayor decided which company to hire for the project. A) Estimate. B) Analysis. C) Instant. D) None of above. Show Answer Correct Answer: B) Analysis. 8. What factors should be considered in cost benefit analysis? A) Time value of money only. B) Expected benefits only. C) Initial cost only. D) Initial cost, expected benefits, time value of money, risk and uncertainty, and intangible factors. Show Answer Correct Answer: D) Initial cost, expected benefits, time value of money, risk and uncertainty, and intangible factors. 9. ..... the BCR, more worthwhile the intervention A) Lower. B) Higher. C) None of the two. D) None of above. Show Answer Correct Answer: B) Higher. 10. Emelia has been invited to a sleep over at Chloe's house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe's house. What is the opportunity cost of her decision? A) Seeing her favorite band. B) Spending time at a friends house. Show Answer Correct Answer: A) Seeing her favorite band. 11. Scott also likes to get to the stadium early to watch batting practice. The closer he parks to the stadium the more batting practice he is able to watch. Find Scott's optimal parking garage A) Westin. B) Fountain Square. C) West River. D) East River. E) Under Stadium. Show Answer Correct Answer: D) East River. 12. ..... is calculated by subtracting the cost of an intervention from its benefits A) BCR. B) RCB. C) PNV. D) NPV. Show Answer Correct Answer: D) NPV. 13. BCR is ..... A) Benefit-Cost Ratio. B) Benefit-Component Ratio. C) Burden of Communicable disease Records. D) None of the Above. Show Answer Correct Answer: A) Benefit-Cost Ratio. 14. A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $ 20 000 a year, and take over a store building that he owns and currently rents to his brother for $ 6000 a year. His expenses at the sushi bar would be $ 50 000, for food and $ 2000 for gas and electricity. What are his implicit costs? A) $ 26 000. B) $ 66 000. C) $ 78 000. D) $ 52 000. Show Answer Correct Answer: A) $ 26 000. 15. The following things are related to Cost-Benefit Analysis (CBA), except A) Strengths (S) and Weaknesses (W) Analysis. B) Sensitivity Analysis. C) Analysis of Distribution Effects and Impact on Poverty. D) Risk and Uncertainty Analysis. Show Answer Correct Answer: A) Strengths (S) and Weaknesses (W) Analysis. 16. Why is cost benefit analysis important? A) To ignore the potential benefits and costs of a decision or project. B) To focus only on the costs and not the benefits of a decision or project. C) To evaluate the potential benefits and costs of a decision or project. D) To make decisions without considering the potential benefits and costs. Show Answer Correct Answer: C) To evaluate the potential benefits and costs of a decision or project. 17. You want to buy a new video game and a new pair of sneakers. You only have enough money to buy one of them. If you buy the video game, what is your trade-off? A) The sneakers. B) The video game. C) The money for the video game. D) None of above. Show Answer Correct Answer: A) The sneakers. 18. Policy impact analysis that allows it to be calculated in a variety of different units is? A) Cost and Benefit Analysis (CBA). B) Cost Effectiveness Analysis (CEA). C) Impact Analysis (IA). D) Discount Rate. Show Answer Correct Answer: C) Impact Analysis (IA). 19. In the passage, the government does not have an UNLIMITED amount of money. What does the word UNLIMITED mean? A) A regular way of doing things. B) The place, person, or thing from which something comes. C) Having no limits, bounds, or restrictions. D) None of above. Show Answer Correct Answer: C) Having no limits, bounds, or restrictions. 20. The following are techniques for analyzing quantitative risk, except A) Problem Tree Analysis. B) Analytical Hierarchy Process. C) Sensitivity Analysis. D) Simulation and Monte-Carlo Techniques. Show Answer Correct Answer: B) Analytical Hierarchy Process. ← PreviousNext →Related QuizzesWelfare Economics QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 2Cost Benefit Analysis Quiz 4Cost Benefit Analysis Quiz 5Cost Benefit Analysis Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books