Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

What is one advantage, instead of a disadvantage, of cost-benefit analysis when deciding on a government investment project?

  • AEconomic agents place different values on external costs and external benefits.
  • BEstimates of external costs and external benefits are included.
  • CForecasts of future costs and benefits vary over time.
  • DMiscalculations of the costs are financed by the taxpayer.

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