Cost-benefit analysis (CBA) measures outcomes in what units?

Cost-benefit analysis (CBA) measures outcomes in what units?

• A. Dollars
• B. Life years saved
• C. QALYs
• D. Natural units

Answer: (A)

Cost-benefit analysis expresses outcomes in monetary terms so costs and benefits can be compared on the same scale. By valuing benefits with dollars—through measures like willingness to pay, avoided costs, or productivity gains—the analysis yields a net benefit or a benefit-to-cost ratio that reveals whether an intervention is economically worthwhile. This monetization is what sets CBA apart from other economic evaluations, which keep outcomes in non-monetary units such as life years saved in cost-effectiveness analysis or QALYs in cost-utility analysis. So, outcomes in a CBA are measured in dollars.

Cost-benefit analysis expresses outcomes in monetary terms so costs and benefits can be compared on the same scale. By valuing benefits with dollars—through measures like willingness to pay, avoided costs, or productivity gains—the analysis yields a net benefit or a benefit-to-cost ratio that reveals whether an intervention is economically worthwhile. This monetization is what sets CBA apart from other economic evaluations, which keep outcomes in non-monetary units such as life years saved in cost-effectiveness analysis or QALYs in cost-utility analysis. So, outcomes in a CBA are measured in dollars.