How can a cost-effectiveness analysis help keep government spending down?
By using CEA, the government can reduce spending by analyzing the cost and benefits of programs and proposed bills before deciding to implement a bill or program that will be just a waste of time and
costs.
What are the steps necessary to implement a cost-benefit analysis of a government program?
The broad process for cost-benefit analysis is to set the analysis plan, determine your costs,
determine your benefits, perform an analysis of both costs and benefits, and make a final recommendation (Hayes, 2022).
What are the difficulties involved in implementing a cost-benefit analysis?
Hayes (2022), a cost-benefit analysis might fail to account for important financial concerns such as inflation, interest rates, varying cash flows, and the present value of money.
What are the criteria for evaluating alternative methods of government finance?
Some of the primary criteria for evaluating alternative methods of government finance are efficiency, equity, transparency, collectability, and revenue production.
Describe 4 other alternatives to taxation when it comes to government finance. Give examples of donations used to finance public goods and services.
Other alternatives to taxation for finance the government is inheritance and estate taxes, excise
taxes, and import duties. An example of a donation used to finance public goods and services is a
private sector or private organization giving funds to a public hospital to either expand or add a health program that will benefit the community. Private corporations donate funds to public schools to either add or buy equipment for the students.
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