6
QuizMultiple Choice

Opportunity Cost — Quiz

Question 6 • Personal Finance

Which term refers to government officials gathering detailed information on the advantages and disadvantages of a public policy decision?

Answer
A
project planning
B
cost-benefit analysis
C
opportunity costs
D
budget review

Explanation

Cost-benefit analysis is the process of examining a policy’s expected advantages and disadvantages, often by estimating their costs and benefits. Project planning organizes how a project will be carried out, while opportunity costs are the benefits given up when choosing one option over another. Therefore, the correct choice is cost-benefit analysis.

AI-written and checked against the verified answer.

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