Education · Economics of Education
The fundamental distinction between Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA) in educational investment revolves around:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1CBA measures the relationship between costs and benefits in monetary terms, while CEA measures the cost-efficiency of the output to total input ratio
- 2CBA is suitable only for evaluation in sectors where objectives are measurable in terms of money, whereas CEA is used where objectives are clearly measurable but not necessarily in financial terms
- 3CBA focuses entirely on intangible costs such as opportunity costs, while CEA strictly quantifies only resource costs and social costs
- 4CBA determines economic profitability using monetary terms for both costs and benefits, whereas CEA compares alternative programs by measuring outcomes in non-monetary physical units (e.g., test scores, graduation rates) against monetary costs✓
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CBA determines economic profitability using monetary terms for both costs and benefits, whereas CEA compares alternative programs by measuring outcomes in non-monetary physical units (e.g., test scores, graduation rates) against monetary costs
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