How Would National Security Be Valued in Benefit-Cost Analysis

Multiple Choice

How would national security be valued in benefit-cost analysis?

A) Public goods like national security are excluded from benefit-cost analysis because valuation of benefits from such goods is not possible.
B) Goods like national security are valued at $0 since national security is not provided through private markets so there is no market price as a reference.
C) Goods like national security are valued using surveys and indirect proxies based on market prices.
D) The value of a public good like national security is the difference between the taxes paid to the government and the salaries paid to army personnel.
E) The value of national security is equal to the difference between revenues and expenses in the government's defense budget.