ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which is true of decisions made using cost-benefit analysis? The best decision results in the most benefits with the fewest costs.

Detailed explanation-2: -During your analysis, you assign monetary values to the costs and benefits of a decision-then subtract costs from benefits to determine net gains. This helps you estimate the full economic benefit (or lack thereof) of your choice so you can decide if it’s a good idea to pursue.

Detailed explanation-3: -What is cost-benefit analysis? Cost-benefit analysis is a way to compare the costs and benefits of an intervention, where both are expressed in monetary units. Both CBA and cost-effectiveness analysis (CEA) include health outcomes.

Detailed explanation-4: -Cost-benefit analysis (CBA) is an economic model that purports to calculate the costs and benefits associated with a particular decision or series of decisions in purely monetary terms.