Adult-Gerontology Clinical Nurse Specialist (CNS) Practice Exam

Cost-benefit analysis serves how many main purposes?

1. 8

2. 6

3. 4

4. 2

The correct answer is: 2

Cost-benefit analysis serves two main purposes, which are fundamental in evaluating the economic viability of projects or interventions. First, it assists decision-makers in comparing the benefits of a project against its costs, allowing for a more informed assessment of whether the potential benefits justify the expenditure. This is crucial for allocating limited resources effectively in healthcare and other fields. Second, it helps prioritize projects based on their potential return on investment. By systematically quantifying and comparing benefits and costs, stakeholders can identify which projects will deliver the most value and impact. This analytical framework is essential in scenarios such as healthcare planning, policy development, and program evaluation, where maximizing outcomes and optimizing the use of resources is vital for both financial and social efficiency. The other options indicating higher numbers suggest a more complex breakdown of purposes that isn’t traditionally recognized in standard economic theory relating to cost-benefit analysis. Thus, recognizing its two core purposes provides a clear and focused understanding of its role in decision-making.