Which of the following statements is true about the cost-benefit analysis of investments in public projects like education, health, etc.? [Select one] Group of answer choices Cost-benefit analysis of public investments in education and health is not necessary since people sufficiently invest in their health and education by themselves. In order to calculate the net present value of public investment, we should compare the opportunity costs of investments to the present value of future benefits. The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries. In order to calculate the net present value of public investment, we should only worry about the cost that is incurred right now since we are not sure if and when the benefits will materialize.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter1: Introducing The Economic Way Of Thinking
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Which of the following statements is true about the cost-benefit analysis of investments in public projects like education, health, etc.? [Select one]

Group of answer choices
  • Cost-benefit analysis of public investments in education and health is not necessary since people sufficiently invest in their health and education by themselves.
  • In order to calculate the net present value of public investment, we should compare the opportunity costs of investments to the present value of future benefits.
  • The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries.
  • In order to calculate the net present value of public investment, we should only worry about the cost that is incurred right now since we are not sure if and when the benefits will materialize.
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