This quiz works best with JavaScript enabled. Home > Finance > Economics > Welfare Economics > Cost Benefit Analysis > Cost Benefit Analysis – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The loss of forest views that are replaced with residential buildings, in the CBA analysis should be included in the category? A) Intangible Costs. B) Wukud Fee. C) Tangible Benefits. D) Intangible Benefits. Show Answer Correct Answer: A) Intangible Costs. 2. When making a decision, government leaders need to consider the economic, ....., AND ..... consequences. A) Social, political. B) Geographical, cultural. Show Answer Correct Answer: A) Social, political. 3. The following are techniques for calculating cost-benefit for non-market valuation cases, except A) Averted expenditure techniques. B) Stated preference techniques. C) Revealed preference techniques. D) Potential income techniques. Show Answer Correct Answer: D) Potential income techniques. 4. If the CBA analysis of a project in one country is carried out by referring to the method of CBA analysis of a project that is the same or almost the same in another country, then the method is called? A) Hedonic Pricing. B) Contingent Valuation. C) Benefit Transfer. D) Choice Modelling. Show Answer Correct Answer: C) Benefit Transfer. 5. Benefits that only a certain group receives but another group suffers because the project is called a term? A) Real Benefits (Real). B) Intangible Benefits (Intangible). C) Pseudo Benefits (Pecuniary). D) Tangible Benefits. Show Answer Correct Answer: C) Pseudo Benefits (Pecuniary). 6. A ..... is something that happens as a result of something else. A) Decision. B) Benefit. C) Consequence. D) Cost. Show Answer Correct Answer: C) Consequence. 7. The fundamental difference in assessing costs and benefits for private projects and government projects is found in? A) Use of Price Assumptions (Market and Non-Market). B) Funding Sources (Private and Government). C) Nature of Goods (Private and Public). D) Project Objectives (Commercial and Non-Commercial). Show Answer Correct Answer: A) Use of Price Assumptions (Market and Non-Market). 8. True of false, there are state AND federal taxes. A) False. B) True. Show Answer Correct Answer: B) True. 9. What is a cost-benefit analysis? A) The taxes that people pay when they buy something. B) A process that allows businesses and individuals to analyze where to spend money. C) The amount of money required to have or do something. D) None of above. Show Answer Correct Answer: B) A process that allows businesses and individuals to analyze where to spend money. 10. What are examples of benefits? Choose all that apply. A) Increased profits. B) Reduced employee turnover. C) Additional employee wages. D) Spending money in the hiring process. Show Answer Correct Answer: A) Increased profits. 11. What you actually pay for something. A) Positive Incentives. B) Implicit Cost. C) Negative Incentives. D) Explicit Cost. Show Answer Correct Answer: D) Explicit Cost. 12. When the marginal cost is GREATER than the marginal benefit of doing something, you should ..... A) Do it. B) Not do it. Show Answer Correct Answer: B) Not do it. 13. What is NOT a service provided by the government using tax money? A) Parks. B) Public Schools. C) Sports. D) Military. Show Answer Correct Answer: C) Sports. 14. What is something you would pay a sales tax on? A) A new video game. B) Seeing a doctor. C) Going to school. D) Calling 911. Show Answer Correct Answer: A) A new video game. 15. This term means the good things or pros of a business decision. A) Cost. B) Benefit. C) Analysis. D) None of above. Show Answer Correct Answer: B) Benefit. 16. When "thinking like an economist", one should accept an option when A) There are no costs. B) There are no marginal costs. C) The benefits outweigh the costs. D) None of above. Show Answer Correct Answer: C) The benefits outweigh the costs. 17. The following are the steps taken in Cost-Benefit Analysis, except: A) Determine the "point of view", where costs for certain parties can become benefits for other parties. B) Determine what options exist to achieve the goals you have set. C) Calculate the "future value" for each cost and benefit. D) Take decisions and compile CBA reports. Show Answer Correct Answer: C) Calculate the "future value" for each cost and benefit. 18. What is economic cost? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: C) The price of an item. 19. You choose to study for a test instead of going to a movie with friends. What is you cost? A) Getting a good grade on the test. B) Spending money. C) Not going to the movie with friends. D) None of above. Show Answer Correct Answer: C) Not going to the movie with friends. 20. Explicit costs are A) Not part of opportunity cost. B) Exactly the same as implicit costs. C) Actual monetary payments for resources purchased. D) The only cost considered in opportunity costs. Show Answer Correct Answer: C) Actual monetary payments for resources purchased. 21. 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. 22. 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. 23. 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. 24. 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. 25. 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. 26. What is the name of the process used to make decisions in the business world? A) Decision analysis. B) Cost-benefit analysis. C) Expenses-benefit analysis. D) Bad-good analysis. Show Answer Correct Answer: B) Cost-benefit analysis. 27. 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. 28. What is the definition of benefit in cost benefit analysis? A) The neutral outcome or no advantage gained from a decision or action. B) The cost incurred from a decision or action. C) The positive outcome or advantage gained from a decision or action. D) The negative outcome or disadvantage gained from a decision or action. Show Answer Correct Answer: C) The positive outcome or advantage gained from a decision or action. 29. 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. 30. 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. ← PreviousNext →Related QuizzesWelfare Economics QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 2Cost Benefit Analysis Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books