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Why Is Cost-Benefit Analysis Important in Determining the Role of Government

Question 31

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Why is cost-benefit analysis important in determining the role of government in our economy


A) Cost-benefit analysis helps government identify all goods in which benefits exceed costs.
B) Cost-benefit analysis identifies the possible gains to society from government provision of a particular good.
C) Cost-benefit analysis identifies the private good markets from the public good markets.
D) Cost-benefit analysis identifies market failure.

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