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The Criticism That Benefit-Cost Analysis Does Not Reflect Distributional or Equity

Question 30

Multiple Choice

The criticism that benefit-cost analysis does not reflect distributional or equity considerations:


A) implies that the analysis is of little value when benefits are inequitably distributed.
B) is not valid because benefit-cost analysis focuses on equity, not efficiency.
C) is addressed by using the tax and redistribution systems to address economic inequities.
D) holds that equity is more important than efficiency in a market economy.
E) implies that benefit-cost analysis should be guardedly used to analyze public programs.

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