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Knowledge and Skills Statement

Scientific and engineering practices. The student knows the contributions of scientists and recognizes the importance of scientific research and innovation on society.

While cost-benefit analysis asks whether the economic benefits outweigh the economic costs of a given policy, cost-effectiveness analysis is focused on the question of how much it costs to get a certain amount of output from a policy. Formulas to calculate the two are listed below.

Cost-benefit = Benefits ($) - Costs ($) (Also known as “net benefits”)

OR

Cost-benefit = Benefits ($) / Costs ($) (Also known as “benefit ratio”)

Cost-effectiveness = Costs ($) / Outcome

the quality or state of being correct or precise; the degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard

 the quality of being trusted and believed in

 data that supports a hypothesis or an argument and is observable through the senses or technology

a new product; a new way of doing something; a new way of thinking