A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2011 · Q151 Mark
What is an advantage, rather than a disadvantage, of cost-benefit analysis in deciding on a government investment project?
AEconomic agents place different values on external costs and external benefits.
BEstimates of external costs and external benefits are included.
CForecasts of future costs and benefits vary over time.
DMiscalculations of the costs are financed by the taxpayer.
✓ Correct answer
B: Estimates of external costs and external benefits are included.
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