Define cost benefit analysis.
The financial gains made by a business as a result of a business decision
The provision of a product or a service to satisfy consumer wants and needs
The income to a business during a period of time from the sale of goods or services
The valuation by a government agency of all external and private costs and benefits resulting from a business decision.
Which of the following is an example of a external cost?
Cost of land
Cost of construction
Labour costs
Pollution
What are licenses to pollute up to a certain level called?
Penalties
Laws
Pollution permits
Pressure groups
Which one is a pressure group?
SAARC
Greenpeace
WWF
ASEAN
Why might a firm not respond to pressure group activity?
Well organized and funded
The cost to the business of changing its methods is more than the possible cost of poor image and lost sales.
They have public support and the media.
Consumer boycotts cause reduced sales.
Which of the following are the type of activities that conserve the environment or do not deplete scarce resources?
Enviornmentally friendly
Social friendly
Customer friendly
None of the above
In what terms can economic growth be measured ?
GDP
GNP
NNP
Inflation
In cost benefit analysis, when will the government probably refuse permission?
If the total social benefit is greater than the total social cost
If the total social benefit is less than the total social cost
If the total social benefit is equal to the total social cost
Which one of the following given below is not an external constraint of business?
Technological change: New products
Technological change: New production processes
Employees problems
Enviornmental issues
Assertion (A): National wealth affects the economic growth of a country.
Reason (R): The wealth of a nation lies in its natural resources and other productive assets.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not a correct explanation of A.
A is true but R is false
A is false but R is true
