Importance of Cost-Benefit Analysis (CBA)

Cost Benefit Analysis
Student's Name
Institutional Affiliation
Instructor
Date
Cost-Benefit Analysis (CBA) is an important aspect when making government decisions. The model helps to ensure that resources are used efficiently and effectively and that the benefits of a proposed policy or program outweigh the costs. CBA plays a crucial role in identifying potential expenses and benefits of a policy decision. It also allows for an assessment of how much a policy will cost and the benefit it will yield. The analysis is essential in identifying a decision's unintended consequences and opportunity costs. Besides, it is critical in informing decision-makers about the potential risks and benefits associated with a particular policy action. Therefore, governments can make better-informed decisions that are in the public's best interest using the cost-benefit analysis.
The case study examines the efficacy of ...