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

Maximum and minimum prices — practice question

What is one key difference between how cost-benefit analysis is used for public-sector investment projects and how it is used for private-sector investment projects?

  • ACosts are more difficult to compute in private-sector investment projects.
  • BPrivate-sector investment projects involve less risk.
  • CPublic-sector investment projects involve benefits which occur in the future.
  • DThe frequent absence of prices in public projects makes benefit estimates more uncertain.

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