Answer to Question #291631 in Macroeconomics for Ralph

Question

Using examples, explain why cost–benefit analysis is central to the decision making process in the allocation of public goods

Answer 1

A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost-benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action.