Two of the most common methods of analyzing the economic costs and benefits of a community health program are cost–benefit analysis and cost-effectiveness analysis. What occurs in cost-effectiveness analysis?
A) Consequences or benefits of a program are valued in dollar terms.
B) Different program benefits are compared in relation to cost.
C) Programs with similar goals and objectives are compared.
D) It is determined whether total benefits exceed total costs.
Ans: C
Cost-effectiveness analysis can be used to compare programs with similar goals and objectives. Cost-effectiveness analysis does not place a dollar value on either the consequences or the costs of a project. Cost–benefit analysis makes it possible to compare different projects because all measurement is made in dollars. Cost-effectiveness analysis does not determine whether total benefits exceed total costs.
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