When does a decision improve welfare?
A
Positive net benefit: total benefits exceed total costs, improving welfare.
B
Negative net benefit: total costs exceed total benefits, improving welfare.
C
Positive net benefit: total costs exceed total benefits, improving welfare.
D
Zero net benefit: total benefits equal total costs, improving welfare.
7.4.7 use of costs and benefits in analysing decisions (knowledge of net present value is not required) Flashcards
22 flashcards on CIE Intl A Level Economics 7.4.7 use of costs and benefits in analysing decisions (knowledge of net present value is not required): the key terms and definitions you need to recall.