Question

TRUE OR FALSE

1. In  reality,  CBA  analysts  evaluate  only  one  project.
2. What  distinguishes  CBA  from  all  the  other  evaluation  analyses  is  that  all  measures  are  in  

monetary(dollar)  terms.

3. A  CBA  is conducted  from  the  societal  perspective.
4. How  much  has  to  be  paid  for  treatment,  and  how  much  the  treatment  is  worth,  depends  on  

whose perspective  a  cost–benefit  analysis  of  health  care  is  taking.

5. An  1844  paper  by  Jules  Dupuit,  "On  the  Measurement  of  the  Utility  of  Public  Works",  is  

sometimes  cited  as the  first  work  on  CBA.

6. NPV  is  a  ratio  of  the  computed  present  values.
7. An  opportunity  cost  of  employed  workers  is  their  wage rate.
8. CBAs include nonmonetary costs.
9. CBA values may be sensitive to characteristics.
10. One weakness of CBAs is that they does not have a common unit of measurement.
11. Gross benefit of consumption is the area under the demand curve.

Answer 1