Cost-Benefit Analysis Worksheet
This worksheet helps students understand and apply the principles of cost-benefit analysis to real-world scenarios.
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Standards
Cost-Benefit Analysis Worksheet
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Read each question carefully and provide thoughtful answers based on your understanding of cost-benefit analysis. For scenarios, consider both monetary and non-monetary costs and benefits.
1. Which of the following best defines a 'cost' in cost-benefit analysis?
Only the money spent on a project.
Anything that must be given up to undertake an action.
The profit gained from an investment.
The time spent on a task.
2. A 'benefit' in cost-benefit analysis refers to:
Only the financial gains from a decision.
Any positive outcome or advantage from an action.
The resources used in a project.
The alternative not chosen.
3. The primary goal of a cost-benefit analysis is to determine if the outweigh the of a decision or project.
4. Non-monetary costs might include things like environmental impact or loss of .
5. An opportunity cost is the value of the next best that was not taken.
6. Describe a situation in your daily life where you unconsciously perform a cost-benefit analysis. What were the costs and benefits you considered?
7. Why is it important to consider both monetary and non-monetary factors when conducting a cost-benefit analysis for a public policy decision (e.g., building a new park)?
8. Cost-benefit analysis is only applicable to financial decisions made by businesses.
True
False
9. An externality, such as pollution from a factory, is typically considered a cost in a cost-benefit analysis.
True
False
10. Imagine your city council is considering building a new public library. Conduct a brief cost-benefit analysis for this project. List at least three potential costs and three potential benefits.
Costs:
Benefits: