For certain intangibles that cannot be measured,it is best to
A) guess.
B) exclude them from cost benefit analysis,and then calculate how large they must be to reverse the decision.
C) reevaluate using the Hicks-Kaldor criterion.
D) leave it to the private sector to decide on value.

Question

Quizplus · Accepted Answer

Since intangibles that cannot be measured cannot be quantitatively analyzed in a cost-benefit analysis, the best approach is to exclude them from the analysis and then determine how significant they would need to be in order to reverse the decision. This allows decision-makers to consider intangibles without being overwhelmed by uncertainty.

For Certain Intangibles That Cannot Be Measured,it Is Best to