9. HL Lenses

Cost-benefit And Cost-effectiveness — Quiz

Test your understanding of cost-benefit and cost-effectiveness with 5 practice questions.

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Practice Questions

Question 1

What is the main purpose of cost-benefit analysis in environmental decision-making?

Question 2

Which statement best describes cost-effectiveness analysis?

Question 3

Why can environmental benefits be difficult to include in a cost-benefit analysis?

Question 4

A city wants to reduce air pollution by $20\%$. It can choose any method as long as the reduction target is reached. Which approach is most appropriate?

Question 5

In environmental economics, what does the term externality mean?