This quiz works best with JavaScript enabled. Home > Economics > Welfare Economics > Cost Benefit Analysis > Cost Benefit Analysis – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Explicit costs are A) Not part of opportunity cost. B) The only cost considered in opportunity costs. C) Exactly the same as implicit costs. D) Actual monetary payments for resources purchased. Show Answer Correct Answer: D) Actual monetary payments for resources purchased. 2. One of the factors to consider when calculating education costs is how much income you may sacrifice during the period you are attending school. A) True. B) False. Show Answer Correct Answer: A) True. 3. What are the five steps in a cost-benefit analysis? A) Choices, consequences, chances, cost, and choose. B) Engage, examine, explain, elaborate, and embark. C) Identify, interpret, interview, investigate, and inspire. D) None of above. Show Answer Correct Answer: A) Choices, consequences, chances, cost, and choose. 4. What is cost benefit analysis? A) A process for estimating the time required for a project. B) A systematic process for calculating and comparing the costs and benefits of a project or decision. C) A technique for evaluating the color scheme of a project. D) A method used to determine the emotional value of a decision. Show Answer Correct Answer: B) A systematic process for calculating and comparing the costs and benefits of a project or decision. 5. What are some of the things paid for with revenue by the government for everyone's use? A) Roads, bridges, police, and fire protection. B) Uniforms, caring for animals, and toys for poor children. C) Houses, cars, and vacations. D) None of above. Show Answer Correct Answer: A) Roads, bridges, police, and fire protection. 6. Which of the following is a disadvantage of cost-benefit analysis? A) It does not consider the time value of money. B) It is too complex to implement. C) Different projects cannot be easily compared. D) Not all costs and benefits can easily be assigned monetary values. Show Answer Correct Answer: C) Different projects cannot be easily compared. 7. What is the name of the process used to make decisions in the business world? A) Decision analysis. B) Expenses-benefit analysis. C) Bad-good analysis. D) Cost-benefit analysis. Show Answer Correct Answer: D) Cost-benefit analysis. 8. The importance of the distribution effect aspect in CBA analysis is due to, except A) Become an indicator in development. B) The trickle down effect process often does not run automatically. C) All countries have problems of disparity and poverty, although in different proportions. D) As one of the things that is required in CBA analysis. Show Answer Correct Answer: D) As one of the things that is required in CBA analysis. 9. What is the definition of benefit in cost benefit analysis? A) The cost incurred from a decision or action. B) The positive outcome or advantage gained from a decision or action. C) The negative outcome or disadvantage gained from a decision or action. D) The neutral outcome or no advantage gained from a decision or action. Show Answer Correct Answer: B) The positive outcome or advantage gained from a decision or action. 10. The sample used in this research? A) All sufferers of COVID-19. B) COVID-19 sufferers quarantined at home. C) COVID-19 sufferers who are hospitalized. D) None of above. Show Answer Correct Answer: C) COVID-19 sufferers who are hospitalized. 11. The friction cost method reflects the true cost of productivity loss for employers ..... A) True. B) False. C) Not sure. D) None of above. Show Answer Correct Answer: A) True. 12. On average, individuals with a college degree will earn more over the course of their lifetimes than those with only a high school diploma. A) True. B) False. Show Answer Correct Answer: A) True. 13. Why do goernments do a cost-benefit analysis? A) So everyone has a chance to decide how to spend their money. B) To make sure that all the citizens have paid their taxes. C) To limit the risk of making a bad decision and to compare ideas to see which one is best. D) None of above. Show Answer Correct Answer: C) To limit the risk of making a bad decision and to compare ideas to see which one is best. 14. Which of the following is not true regarding Cost-Benefit Analysis (CBA)? A) CBA is an analytical framework used to measure the benefits and costs of a policy design. B) Basically, CBA is an 'ordinary' rational decision-making process. C) CBA focuses on economic efficiency. D) CBA requires a medium-term view and involves immediate benefits and costs. Show Answer Correct Answer: D) CBA requires a medium-term view and involves immediate benefits and costs. 15. Essentially, what is a cost-benefit analysis? A) A list of all the employees you want to hire. B) A pros-cons list. C) A christmas wishlist. D) A list of all the projects you want to do. Show Answer Correct Answer: B) A pros-cons list. 16. The following are some of the limitations of CBA analysis, except A) It is morally unacceptable to judge nature (life, living creatures, etc.). B) CBA does not deal with social values. C) Every individual has the same preferences. D) Based on income, so it tends to be biased. Show Answer Correct Answer: C) Every individual has the same preferences. 17. Diamonds are a ..... resource because they are hard to find. A) Handy. B) Normal. C) Scarce. D) None of above. Show Answer Correct Answer: C) Scarce. 18. The following are some of the advantages of CBA analysis, except A) CBA is able to calculate all types of costs and benefits of a project. B) CBA provides a systematic and consistent evaluation method. C) CBA provides a systematic and consistent evaluation method. D) CBA mempertimbangkan trade-off dan opportunity cost. Show Answer Correct Answer: A) CBA is able to calculate all types of costs and benefits of a project. 19. What are consequences? A) Something that is possible but is not yet real. B) Money charged to do something for a service. C) Task that demands time and effort to complete. D) The results (positive or negative) of an action or decision. Show Answer Correct Answer: D) The results (positive or negative) of an action or decision. 20. Willingness to Pay studies are ..... studies A) Revealed preference. B) Observed preference. C) Human capital. D) Stated preference. Show Answer Correct Answer: D) Stated preference. ← PreviousNext →Related QuizzesWelfare Economics QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 2Cost Benefit Analysis Quiz 3Cost Benefit Analysis Quiz 4Cost Benefit Analysis Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books