Question

If a law clearly says that you need to reach a particular outcome and you want to figure out the most efficient way to achieve that outcome, the best tool for analysis is probably ___

cost-effectiveness analysis

regulatory analysis

Green GDP analysis

benefit-cost analysis

Answer 1

Solution:

When a particular outcome is to be reached and we are looking for the most efficient way to reach it, we are basically supposed to analyze and make comparisons between different ways of reaching the outcome and choosing the best way; best in terms of say minimum cost, minimum time, minimum resource engagement, etc.

Now, regulatory analysis mainly involves an analysis based on small level for some regulation to be introduced in the economy, to know about the consequences, and results of the regulation; clearly it doesn't serve our purpose here. Green GDP involves the environmental consequences evaluating a nation's GDP which again doesn't have much to do with the question at hand. Cost-benefit analysis is mainly undertaken when some investment decisions are to be made or something that involves risk. Basically it helps in finding an answer to the question in a yes or a no, rather than this way or that way something shall be attained.

Cost-effectiveness analysis helps us compare and choose among various course of actions possible to undertake in order to achieve something. So, this suits best for the current situation, making the correct option (A) cost-effectiveness analysis.