Create a paragraph using 5 of these words (8 sentences )

Question

Scarcity

shortage

goods

services

consumer

producer

favors of production

cost benefit analysis

opportunity cost

economics

trade offs

Answer 1

Cost-benefit analysis is a fundamental tool, both of economics and of public policy. The analytical framework is intuitive, what are the costs of any goods or services as compared to their benefit. This benefit can be monetary, emotional, or immaterial. For example, what are the costs associated with a national health insurance program, compared to the potential health-benefits of a national population. Cost-benefit analysis is related to another economic concept: opportunity cost. This is essentially what you don't receive a benefit from by choosing your course of action. When you make a policy or consumption choice, you expend resources which could have been used elsewhere. Therefore, in a cost-benefit analysis, and in other economic analyses, one must factor in what you could do with your resources.