This quiz works best with JavaScript enabled. Home > Economics > Welfare Economics > Cost Benefit Analysis > Cost Benefit Analysis – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 6 (8 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Arnold works at an entry-level post in a pharmaceutical company. He is now considering pursuing a course to help him move ahead in his company. Per his calculations, the total estimated cost of his education will be about $ 100, 000, and the course would increase his lifetime earning potential from $ 1M to $ 1.1M. What is the lifetime ROI of his investment? A) 1%. B) 10%. C) 100%. D) 1, 000%. Show Answer Correct Answer: C) 100%. 2. The present value will be higher when? A) The future value is low and the time period is long. B) The future value is low and the time is not long. C) The future value is high and the time period is long. D) The future value is high and the time is not long. Show Answer Correct Answer: D) The future value is high and the time is not long. 3. An opportunity cost is entailed in which of the following situations?I. A student decides to attend college full-time. II. A family uses its $ 20, 000 savings to purchase an automobile. III. A farmer decides to grow more wheat and less corn. A) I only. B) II only. C) III only. D) I and III only. E) I, II, and III. Show Answer Correct Answer: E) I, II, and III. 4. In terms of today's lesson, what is a cost? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: A) A negative outcome. 5. For decision making in Cost-Benefit analysis, there are several methods that can be used, except A) Net Present Value (NPV). B) Benefit-Cost Ratio. C) Cost Effectiveness Analysis. D) Discount Rate. Show Answer Correct Answer: D) Discount Rate. 6. The total cost of Lindsay's graduate degree was $ 35, 000. With this degree, she expects to earn an additional $ 10, 000 per year. What is Lindsay's break-even point? A) 1 year. B) 1.5 years. C) 2 years. D) 3.5 years. Show Answer Correct Answer: D) 3.5 years. 7. Thinking in terms of financial gain, any kind of higher education choice is a good choice, because a degree or certification will always pay off in some way. A) True. B) False. Show Answer Correct Answer: B) False. 8. When should cost benefit analysis be used? A) When deciding what to wear for the day. B) When choosing a restaurant for dinner. C) When making decisions about investments or projects. D) When planning a vacation. Show Answer Correct Answer: C) When making decisions about investments or projects. ← PreviousRelated QuizzesWelfare Economics QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 2Cost Benefit Analysis Quiz 3Cost Benefit Analysis Quiz 4Cost Benefit Analysis Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books