This quiz works best with JavaScript enabled. Home > Analysis > Cost Benefit > Cost Benefit Analysis – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following are techniques for calculating the cost-benefit for non-market valuation cases, except A) Revealed preference techniques. B) Potential income techniques. C) Averted expenditure techniques. D) Stated preference techniques. Show Answer Correct Answer: B) Potential income techniques. 2. For decision making in Cost-Benefit analysis, there are several methods that can be used, except A) Net Present Value (NPV). B) Benefit-Cost Ratio. C) Cost Effectiveness Analysis. D) Discount Rate. Show Answer Correct Answer: D) Discount Rate. 3. What do businesses utilize when making decisions among various projects? A) Benefit-cost analysis. B) Optional analysis. C) Profit-margin analysis. D) Trade-off analysis. Show Answer Correct Answer: A) Benefit-cost analysis. 4. In terms of today's lesson, what is a cost? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: A) A negative outcome. 5. In terms of today's lesson, what is a benefit? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: B) A positive outcome. 6. When is trading with externalities efficient?(according to the coase theorem) A) Always. B) Without transaction costs. C) With transaction costs under 1mio.$. D) Never. Show Answer Correct Answer: B) Without transaction costs. 7. You choose to study for a test instead of going to a movie with friends. What is you cost? A) Getting a good grade on the test. B) Spending money. C) Not going to the movie with friends. D) None of above. Show Answer Correct Answer: C) Not going to the movie with friends. 8. Some of the following are matters related to Cost-Benefit Analysis (CBA), except A) Analysis of Strengths (S) and Weaknesses (W). B) Sensitivity Analysis. C) Analysis of Distribution Effects and Impact on Poverty. D) Risk and Uncertainty Analysis. Show Answer Correct Answer: A) Analysis of Strengths (S) and Weaknesses (W). 9. Benefits that only certain groups receive but other groups suffer because of the project are referred to as? A) Real Benefits (Real). B) Pseudo Benefits (Pecuniary). C) Tangible Benefits. D) Intangible Benefits. Show Answer Correct Answer: B) Pseudo Benefits (Pecuniary). 10. In Cost/Benefit Analysis, adding an additional unit pays off as long as: A) Marginal benefits exceed marginal costs. B) Marginal costs exceed marginal benefits. C) Marginal costs equal marginal benefits. D) None of the above. Show Answer Correct Answer: A) Marginal benefits exceed marginal costs. 11. The present value will be higher when? A) The future value is low and the time is long. B) The future value is low and the time is short. C) The future value is high and the time is long. D) The future value is high and the time is short. Show Answer Correct Answer: D) The future value is high and the time is short. 12. What is the most important fact of the cost-benefit principle? A) Costs are not allowed to be higher than 1mio.$. B) Costs need to be greater than costs. C) Benefits need to be greater than costs. D) Benefits are always measured in $. Show Answer Correct Answer: C) Benefits need to be greater than costs. 13. You decide to spend all the money you saved on a new pair of expensive shoes. What is the benefit of your decision? A) All the money you saved. B) The price you paid for the shoes. C) Not wearing your shoes because they are too expensive. D) Having new expensive shoes. Show Answer Correct Answer: D) Having new expensive shoes. 14. Which benefit is intangible? A) Increased customer goodwill. B) Increased profits. C) Increased productivity. D) Increased efficiency. Show Answer Correct Answer: A) Increased customer goodwill. 15. The loss of forest views replaced by residential buildings, in the CBA analysis should be included in the category? A) Tangible Benefits. B) Intangible Benefits. C) Wukud Fee. D) Intangible Costs. Show Answer Correct Answer: D) Intangible Costs. 16. A ..... is something that happens as a result of something else. A) Consequence. B) Benefit. C) Cost. D) Decision. Show Answer Correct Answer: A) Consequence. 17. When conducting a cost-benefit analysis, people analyze where to spend their money to see what will give them the most ..... A) Answers. B) Taxes. C) Benefits. D) Consequences. Show Answer Correct Answer: C) Benefits. 18. If it is difficult to calculate all types of costs and benefits in the CBA analysis, the calculation of the CBA analysis can be done using the? A) Econometrics. B) Tabel Input-Output (IO). C) Data Envelopment Analysis (DEA). D) Analytical Hierarchy Process (AHP). Show Answer Correct Answer: D) Analytical Hierarchy Process (AHP). 19. What is a benefit that is difficult to assess financially? A) Intangibles. B) Increased profits. C) Decreased expenses. D) If it can't be assessed financially it's not a benefit. Show Answer Correct Answer: A) Intangibles. 20. Following situation:You want to relax in a park and you hear noises of playing kids in the background, which are irritating you. What is the correct economical term for the noise? A) External benefit. B) Gain in surplus. C) Loss in surplus. D) External cost. Show Answer Correct Answer: D) External cost. Next →Related QuizzesAnalysis QuizzesCost Benefit Analysis Quiz 2Cost Benefit Analysis Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books