This quiz works best with JavaScript enabled. Home > Economics > Analysis > Cost Benefit > Cost Benefit Analysis – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Benefit Analysis Quiz 2 (17 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. What is the correct formula for gain in surplus? A) Revenue-variable costs. B) Revenue-least costly solution. C) Savings-least costly solution. D) Savings-sum of costs. Show Answer Correct Answer: C) Savings-least costly solution. 3. This term means the good things or pros of a business decision. A) Benefits. B) Outcome. C) Costs. D) Intangibles. Show Answer Correct Answer: A) Benefits. 4. 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) Marginal cost. B) Variable cost. C) Fixed cost. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 5. 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. 6. All of the following are possible opportunity costs to the decision to go out for Pizza except A) Eaten at home instead. B) You could have gone out for Chinese food. 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. 7. Egyptian pharaohs likely had to perform a cost-benefit analysis before making big decisions such as whether or not to build ..... A) Steles. B) Pyramids. C) Mosques. D) Ziggurats. Show Answer Correct Answer: B) Pyramids. 8. Giving up one alternative good or service for another is called A) An opportunity cost. B) A want. C) A trade-off. D) A scarcity. Show Answer Correct Answer: C) A trade-off. 9. The process of quantifying costs and benefits of a decision A) Negotiate. B) Integrity. C) Mark Up. D) Cost-Benefit Analysis. Show Answer Correct Answer: D) Cost-Benefit Analysis. 10. You choose to study for a test instead of going to a movie with friends. What is the benefit of your choice. A) Hanging with friends. B) Seeing the movie. C) Getting a good grade on a test. D) Spending money. Show Answer Correct Answer: C) Getting a good grade on a test. 11. All of the following may be benefits of going to school except A) Getting less sleep. B) Not sitting at home being bored. C) Getting an education. D) Seeing your friends. Show Answer Correct Answer: A) Getting less sleep. 12. Which is NOT an example of a cost? A) Money for giving employees wages. B) Money for giving employee benefits. C) Increased expenses. D) Increased efficiency. Show Answer Correct Answer: D) Increased efficiency. 13. Which of the following is a disadvantage of cost-benefit analysis? A) It does not consider the time value of money. B) It is too complex to implement. C) Different projects cannot be easily compared. D) Not all costs and benefits can easily be assigned monetary values. Show Answer Correct Answer: C) Different projects cannot be easily compared. 14. This term means the expenses or the cons to making a business decision. A) Analysis. B) Payback period. C) Cost. D) Benefit. Show Answer Correct Answer: C) Cost. 15. What is the principle behind time value of money? A) Cash in and cash out. B) Money tomorrow is worth more than money today. C) Money today is worth more than money tomorrow. D) Projects with more risk have a lower discount rate. Show Answer Correct Answer: C) Money today is worth more than money tomorrow. 16. Policy impact analysis that allows for quantification in different types of units is? A) Cost and Benefit Analysis (CBA). B) Cost Effectiveness Analysis (CEA). C) Impact Analysis (IA). D) Discount Rate. Show Answer Correct Answer: C) Impact Analysis (IA). 17. The amount of time it takes to earn back what you lost in a business decision is ..... A) Lost period. B) Payback period. C) Earning period. D) Recovery period. Show Answer Correct Answer: B) Payback period. ← PreviousRelated QuizzesAnalysis QuizzesEconomics QuizzesCost Benefit Analysis Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books