ECONOMICS

Detailed explanation-1: -CBA helps predict whether the benefits of a policy outweigh its costs (and by how much), relative to other alternatives. This allows the ranking of alternative policies in terms of a cost–benefit ratio. Generally, accurate cost–benefit analysis identifies choices which increase welfare from a utilitarian perspective.

Detailed explanation-2: -Net Present Value and Benefit-Cost Ratio are the two most common methods of doing a cost-benefit analysis. The NPV model chooses the project with the highest NPV. The benefit-cost ratio model chooses the project with the highest benefit-cost ratio.

Detailed explanation-3: -A thorough cost-benefit analysis should identify the purpose and goals behind the project, gather business and project requirements, identify all of the resources to be used, determine the metrics to measure success, and consider other potential options.

Detailed explanation-4: -CUA is a method of analysis in which the outcome of a program or an intervention is measured by outcomes such as the cost per QALY. CUA integrates economic information and epidemiological information as to the proposed intervention.