Question: What is the significance of \'cost-benefit analysis\' in resource allocation? (2023)

Options:

1. It helps in determining the most equitable distribution of resources.
2. It evaluates the financial implications of resource allocation decisions.
3. It assesses the potential benefits against the costs of a decision.
4. It ensures that all stakeholders are satisfied with the allocation.

Correct Answer: It assesses the potential benefits against the costs of a decision.

Exam Year: 2023

Solution:

Cost-benefit analysis is significant as it assesses the potential benefits against the costs of a decision, making option 2 the correct answer.