This quiz works best with JavaScript enabled. Home > Economics > Analysis > Cost Benefit > Cost Benefit Analysis – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 1 (30 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) Stated preference techniques. D) Averted expenditure 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) Cost Effectiveness Analysis. B) Discount Rate. C) Net Present Value (NPV). D) Benefit-Cost Ratio. Show Answer Correct Answer: B) Discount Rate. 3. What do businesses utilize when making decisions among various projects? A) Optional analysis. B) Profit-margin analysis. C) Trade-off analysis. D) Benefit-cost analysis. Show Answer Correct Answer: D) 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) With transaction costs under 1mio.$. B) Without transaction costs. C) Always. D) Never. Show Answer Correct Answer: B) Without transaction costs. 7. You choose to study for a test instead of going to a movie with friends. What is you cost? A) Getting a good grade on the test. B) Spending money. C) Not going to the movie with friends. D) None of above. Show Answer Correct Answer: C) Not going to the movie with friends. 8. Some of the following are matters related to Cost-Benefit Analysis (CBA), except A) Analysis of Strengths (S) and Weaknesses (W). B) Sensitivity Analysis. C) Analysis of Distribution Effects and Impact on Poverty. D) Risk and Uncertainty Analysis. Show Answer Correct Answer: A) Analysis of Strengths (S) and Weaknesses (W). 9. Benefits that only certain groups receive but other groups suffer because of the project are referred to as? A) Real Benefits (Real). B) Pseudo Benefits (Pecuniary). C) Intangible Benefits. D) Tangible Benefits. Show Answer Correct Answer: B) Pseudo Benefits (Pecuniary). 10. In Cost/Benefit Analysis, adding an additional unit pays off as long as: A) Marginal benefits exceed marginal costs. B) Marginal costs exceed marginal benefits. C) Marginal costs equal marginal benefits. D) None of the above. Show Answer Correct Answer: A) Marginal benefits exceed marginal costs. 11. The present value will be higher when? A) The future value is low and the time is long. B) The future value is low and the time is short. C) The future value is high and the time is long. D) The future value is high and the time is short. Show Answer Correct Answer: D) The future value is high and the time is short. 12. What is the most important fact of the cost-benefit principle? A) Costs are not allowed to be higher than 1mio.$. 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 efficiency. B) Increased customer goodwill. C) Increased productivity. D) Increased profits. Show Answer Correct Answer: B) Increased customer goodwill. 15. The loss of forest views replaced by residential buildings, in the CBA analysis should be included in the category? A) Wukud Fee. B) Intangible Benefits. C) Tangible Benefits. D) Intangible Costs. Show Answer Correct Answer: D) Intangible Costs. 16. A ..... is something that happens as a result of something else. A) Cost. B) Benefit. C) Consequence. D) Decision. Show Answer Correct Answer: C) Consequence. 17. When conducting a cost-benefit analysis, people analyze where to spend their money to see what will give them the most ..... A) Benefits. B) Taxes. C) Consequences. D) Answers. Show Answer Correct Answer: A) 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) Analytical Hierarchy Process (AHP). B) Tabel Input-Output (IO). C) Econometrics. D) Data Envelopment Analysis (DEA). Show Answer Correct Answer: A) 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) Loss in surplus. C) Gain in surplus. D) External cost. Show Answer Correct Answer: D) External cost. 21. 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. 22. When "thinking like an economist" , one should accept an option when A) There are no marginal costs. B) The costs outweigh the benefits. C) The benefits outweigh the costs. D) There are no costs. Show Answer Correct Answer: C) The benefits outweigh the costs. 23. Who is affected by externalities of an economic activity? A) Everyone. B) Always the generator of activity. C) Unrelated third parties. D) The whole company. Show Answer Correct Answer: C) Unrelated third parties. 24. What is the name of the process used to make decisions in the business world? A) Expenses-benefit analysis. B) Decision analysis. C) Bad-good analysis. D) Cost-benefit analysis. Show Answer Correct Answer: D) Cost-benefit analysis. 25. 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. 26. 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. 27. 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) Hedonic Pricing. B) Choice Modelling. C) Contingent Valuation. D) Benefit Transfer. Show Answer Correct Answer: D) Benefit Transfer. 28. 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. 29. What is an example of a cost? A) Amy got a bow because she spent 1 dollar at the Dollar Tree. B) The china cups are 10 dollars. C) Party time!. 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. 30. Which sentence is a example of a benefit? A) Doing your chores. B) I like apples. C) I did not have a toy because I saved up for college. D) I got a fun toy to play with that I bought from the store. Show Answer Correct Answer: D) I got a fun toy to play with that I bought from the store. Next →Related QuizzesAnalysis QuizzesEconomics QuizzesCost Benefit Analysis Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books