Cost-benefit analysis

Definition

Cost-benefit analysis is a systematic process used to evaluate the advantages (benefits) and disadvantages (costs) associated with a particular action or policy decision, particularly in the context of political governance and policy-making. It aims to determine the best course of action by weighing the total expected benefits against the total expected costs.

Related terms

Public Policy:

The set of actions taken by government officials or institutions designed to address public issues and achieve desired outcomes.

Decision: Making Process - A series of steps followed by an individual or group to select a course of action among several alternatives.

Opportunity Cost:

The loss of potential gain from other alternatives when one alternative is chosen