Costs and Benefits Analysis Worksheet
An 11th-grade social studies worksheet focusing on understanding and applying cost-benefit analysis to economic decisions.
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Costs and Benefits Analysis
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Read each question carefully and provide thoughtful responses. This worksheet will assess your understanding of cost-benefit analysis in various economic scenarios.
1. Which of the following best describes a 'benefit' in economic decision-making?
The monetary cost of an action.
The positive outcome or gain from an action.
The alternative forgone when making a choice.
A sunk cost that cannot be recovered.
2. Opportunity cost is most closely associated with which aspect of economic decision-making?
Monetary profits
Externalities
Trade-offs
Scarcity of resources
3. The concept of weighing the advantages and disadvantages of a choice is known as .
4. When making a decision, the value of the next best alternative that was not chosen is called the .
5. Explain the difference between explicit costs and implicit costs, providing an example for each.
6. A cost-benefit analysis always leads to a decision where monetary benefits outweigh monetary costs.
True
False
7. Non-monetary factors should not be considered when conducting a cost-benefit analysis.
True
False
8. Imagine your local government is considering building a new public park. Identify at least three potential costs and three potential benefits of this project. Discuss how a cost-benefit analysis could help the government make an informed decision.