Answer to Question #218657 in Economics for Meher

Question

Which of the following statements is true about the cost-benefit analysis of investments in public projects like education, health, etc.? [Select one] 

1.   Cost-benefit analysis of public investments in education and health is not necessary since people sufficiently invest in their health and education by themselves. 
2.   In order to calculate the net present value of public investment, we should compare the opportunity costs of investments to the present value of future benefits. 
3.   The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries. 
4.   In order to calculate the net present value of public investment, we should only worry about the cost that is incurred right now since we are not sure if and when the benefits will materialize.

Answer 1

3.The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries.