This quiz works best with JavaScript enabled. Home > Analysis > Cost Benefit > Cost Benefit Analysis – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main problem that becomes the focus of the Cost-Benefit Analysis is? A) Efficient use of factors of production. B) Distribution of costs incurred and benefits obtained. C) Economic stabilization, both micro and macro. D) The benefits must be greater than the costs. Show Answer Correct Answer: A) Efficient use of factors of production. 2. When "thinking like an economist" , one should accept an option when A) The benefits outweigh the costs. B) The costs outweigh the benefits. C) There are no costs. D) There are no marginal costs. Show Answer Correct Answer: A) The benefits outweigh the costs. 3. Who is affected by externalities of an economic activity? A) Always the generator of activity. B) Unrelated third parties. C) Everyone. D) The whole company. Show Answer Correct Answer: B) Unrelated third parties. 4. What is the name of the process used to make decisions in the business world? A) Decision analysis. B) Expenses-benefit analysis. C) Bad-good analysis. D) Cost-benefit analysis. Show Answer Correct Answer: D) Cost-benefit analysis. 5. What is economic cost? A) A negative outcome. B) A positive outcome. C) The price of an item. D) None of above. Show Answer Correct Answer: C) The price of an item. 6. Essentially, what is a cost-benefit analysis? A) A list of all the employees you want to hire. B) A pros-cons list. C) A christmas wishlist. D) A list of all the projects you want to do. Show Answer Correct Answer: B) A pros-cons list. 7. If the CBA analysis of a project in a country is carried out by referring to the same or nearly the same method of CBA analysis of a project in another country, then the method is called the? A) Benefit Transfer. B) Contingent Valuation. C) Choice Modelling. D) Hedonic Pricing. Show Answer Correct Answer: A) Benefit Transfer. 8. What is the impact of underutilization of resources? A) Higher unemployment and more prosperity. B) Higher unemployment and less prosperity. C) Lower unemployment and more prosperity. D) No change in unemployment and no change in prosperity. Show Answer Correct Answer: B) Higher unemployment and less prosperity. 9. What is an example of a cost? A) Party time!. B) The china cups are 10 dollars. C) Amy got a bow because she spent 1 dollar at the Dollar Tree. D) Brodie did not have enough money for a toy because he was saving up for college. Show Answer Correct Answer: D) Brodie did not have enough money for a toy because he was saving up for college. 10. Which sentence is a example of a benefit? A) I did not have a toy because I saved up for college. B) I got a fun toy to play with that I bought from the store. C) I like apples. D) Doing your chores. Show Answer Correct Answer: B) I got a fun toy to play with that I bought from the store. 11. What is a cost-benefit analysis? A) The taxes that people pay when they buy something. B) A process that allows businesses and individuals to analyze where to spend money. C) The amount of money required to have or do something. D) None of above. Show Answer Correct Answer: B) A process that allows businesses and individuals to analyze where to spend money. 12. What is the correct formula for gain in surplus? A) Savings-least costly solution. B) Savings-sum of costs. C) Revenue-least costly solution. D) Revenue-variable costs. Show Answer Correct Answer: A) Savings-least costly solution. 13. This term means the good things or pros of a business decision. A) Costs. B) Outcome. C) Benefits. D) Intangibles. Show Answer Correct Answer: C) Benefits. 14. The cost of the next-best use of your money or time when you choose to do one thing rather than another is known as A) Opportunity cost. B) Marginal cost. C) Variable cost. D) Fixed cost. Show Answer Correct Answer: A) Opportunity cost. 15. You decide to spend all the money you saved on a new pair of expensive shoes. What is the cost of your choice? A) New shoes. B) All the money you saved. C) Showing off your new shoes. D) None of above. Show Answer Correct Answer: B) All the money you saved. 16. All of the following are possible opportunity costs to the decision to go out for Pizza except A) You could have gone out for Chinese food. B) Eaten at home instead. C) You could have gone to your friends house. D) You will have consumed a lot of food. Show Answer Correct Answer: D) You will have consumed a lot of food. 17. Egyptian pharaohs likely had to perform a cost-benefit analysis before making big decisions such as whether or not to build ..... A) Pyramids. B) Mosques. C) Ziggurats. D) Steles. Show Answer Correct Answer: A) Pyramids. 18. Giving up one alternative good or service for another is called A) An opportunity cost. B) A scarcity. C) A trade-off. D) A want. Show Answer Correct Answer: C) A trade-off. 19. The process of quantifying costs and benefits of a decision A) Integrity. B) Negotiate. C) Mark Up. D) Cost-Benefit Analysis. Show Answer Correct Answer: D) Cost-Benefit Analysis. 20. You choose to study for a test instead of going to a movie with friends. What is the benefit of your choice. A) Seeing the movie. B) Spending money. C) Hanging with friends. D) Getting a good grade on a test. Show Answer Correct Answer: D) Getting a good grade on a test. ← PreviousNext →Related QuizzesAnalysis QuizzesCost Benefit Analysis Quiz 1Cost Benefit Analysis Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books