2. Policy Analysis

Cost Benefit — Quiz

Test your understanding of cost benefit with 5 practice questions.

Practice Questions

Question 1

Which statement best describes the difference between Net Present Value (NPV) and Benefit-Cost Ratio (BCR)?

Question 2

The travel cost method in environmental valuation estimates the use value of a site by:

Question 3

A project has present value of benefits of $250,000 and present value of costs of $200,000. What is its Benefit-Cost Ratio (BCR)?

Question 4

Which type of cost is typically excluded from incremental cost-benefit analysis because it does not affect future decisions?

Question 5

Which valuation method uses differences in property values to estimate the implicit price of environmental attributes like air quality?