Study Questions

  1. Explain what evaluative criteria are in general and how they are used. Then define the criteria discussed in Chapter 6.
  2. When is cost-benefit analysis used? How is it done? How is cost-effectiveness analysis different?
  3. Define opportunity cost, discount rate, and contingent valuation methods (all related to cost-benefit analysis).
  4. How do analysts evaluate risks or potential impact of policy proposals?
  5. Explain how forecasting and projections are used in policy analysis.