Several analytic tools are used regularly by policy analysts.

Several concepts are important in benefit-cost analysis. To put boundaries on the problem, it is

typically necessary to identify those whose interests matter for purposes of doing the analysis.

Such persons and groups are said to have 31. ___________________________. Sometimes it is

difficult to determine the monetary value of specific costs and benefits. For example, what is the value of a tennis court located in a public park? A way around this difficult is to employ

market 32. __________________________ that prevail in comparable situations, such as the

dollar amount charged per hour for the use of courts at private tennis clubs. Formally, in

benefit-cost analysis, costs are defined as 33. _________________________ costs, or the value of

the best alternative use of a resource. Policy analysts typically must determine the stream of future benefits, which are then 34. ____________________________ to obtain a stream of 35. _______________________ benefits. The sum of present benefits less the sum of present costs is equal to 36. _______________________________. In general, a project that has a

37. __________________________ net present value is worth pursuing, and a policy analyst should advise their client of that. Policy analysts can then compute a measure of the

38. ___________________________ of a project, the benefit/cost ratio. It is worthwhile for policy

analysts to conduct 39. __________________________ analysis, a method that looks at the impact

on net present value of various changes in assumptions. Policy analysts can conduct a

40. _____________________________analysis to determine the minimum scale of a project that is necessary for the project to yield a positive net present value.