Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Under which circumstances is the accuracy of cost-benefit analysis in decision making most likely to be reduced?

  • Aproportion of external costs and benefits to total costs and benefits: high; % of total costs and total benefits that are in the future: high
  • Bproportion of external costs and benefits to total costs and benefits: high; % of total costs and total benefits that are in the future: low
  • Cproportion of external costs and benefits to total costs and benefits: low; % of total costs and total benefits that are in the future: high
  • Dproportion of external costs and benefits to total costs and benefits: low; % of total costs and total benefits that are in the future: low

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