Cost/Benefit Analysis

What do businesses utilise when making decisions among various projects?

• Trade off analysis

• Cost Benefit analysis

• Profit margin analysis

What is the principle behind time value of money?

• Cash in and cash out

• Money tomorrow is worth more than money today

• Money today is worth more than money tomorrow

• Projects with more risk have a lower discount rate

When "thinking like an economist", one should accept an option when 

• there are no costs.

• there are no marginal costs.

• the benefits outweigh the costs.

This term means the expenses or the cons to making a business decision.

• Cost

• Benefits

• analysis

This term means the good things or pros of a business decision.

• Cost

• Benefit

• Analysis

What are examples of benefits? Choose all that apply.

• increased profits

• reduced employee turnover

• spending money in the hiring process

• Additional employee wages

Essentially, what is a cost-benefit analysis?

• a list of all the employees you want to hire

• a pros-cons list

• a christmas wishlist

• a list of all the projects you want to do

Which is NOT an example of a cost?

• increased expenses

• increased efficiency

• money for giving employee benefits

• money for giving employees wages

You want to buy a new video game and a new pair of sneakers. You only have enough money to buy one of them. If you buy the video game, what is your trade-off?

• The sneakers

• The video game

• The money for the video game

You choose to study for a test instead of going to a movie with friends. What is you cost?

• getting a good grade on the test

• spending money

• not going to the movie with friends