Cost-Benefit Analysis Worksheet
This worksheet helps students understand and apply the principles of cost-benefit analysis in various economic scenarios.
Includes
Standards
Topics
Cost-Benefit Analysis
Name:
Date:
Score:
Read each question carefully and provide thoughtful answers based on your understanding of cost-benefit analysis. Show your work where applicable.
1. Which of the following is NOT typically considered a cost in cost-benefit analysis?
Opportunity cost
Sunk cost
Externalities
Benefits received
2. The primary goal of conducting a cost-benefit analysis is to:
Minimize all costs
Maximize all benefits
Determine if the benefits outweigh the costs
Calculate the exact financial profit
3. The value of the next best alternative that was not taken is known as the .
4. Costs or benefits that affect third parties not directly involved in a transaction are called .
5. In cost-benefit analysis, both monetary and factors should be considered.
6. Sunk costs should be included in a cost-benefit analysis when making future decisions.
True
False
7. A positive net benefit indicates that a project or decision is economically viable.
True
False
8. Briefly explain the difference between private costs and social costs in the context of cost-benefit analysis.
9. Describe a real-world scenario where an individual or a government might use cost-benefit analysis to make a decision.