ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A cost-benefit analysis is the process of comparing the projected or estimated costs and benefits (or opportunities) associated with a project decision to determine whether it makes sense from a business perspective.

Detailed explanation-2: -The steps to create a meaningful Cost-Benefit Analysis model are: Define the framework for the analysis. Identify the state of affairs before and after the policy change or investment on a particular project. Analyze the cost of this status quo.

Detailed explanation-3: -Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives.

Detailed explanation-4: -A benefit-cost analysis (BCA) is a systematic process for identifying, quantifying, and comparing expected benefits and costs of an investment, action, or policy. Common uses of BCA at DOT include regulatory impact analysis and policy analysis, as well as infrastructure project evaluation.

Detailed explanation-5: -While cost-benefit analysis asks whether the economic benefits outweigh the economic costs of a given policy, cost-effectiveness analysis is focused on the question of how much it costs to get a certain amount of output from a policy.