Economics A-Level
Cost-benefit analysis
What Cost-benefit analysis means in Economics A-Level, as defined for AQA.
Definition of Cost-benefit analysis
Check what you remember
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Reference: AQA
Intervention should only proceed if the expected benefits exceed the expected costs of both the policy and potential government failure.
Topics that use Cost-benefit analysis
- Government failure (AQA A-Level)
Related terms
- Administrative costs
- Conflicting objectives
- Economic welfare
- Government failure
- Inadequate information
- Market versus government
- Price mechanism
- Unintended consequences
Using Cost-benefit analysis in the exam
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