EA should predict political and other non-economic impact.

EA should predict political and other non-economic impact.

• A. True
• B. False
• C. Not applicable
• D. Sometimes true

Answer: (B)

Economic Analysis centers on the economic consequences of a program or decision—costs, benefits, and their timing, typically expressed in monetary terms or decision-relevant units. Non-economic factors like political effects, social impacts, or legal issues are outside EA unless they directly drive economic outcomes. So predicting political and other non-economic impacts isn’t the purpose of Economic Analysis. For a full decision picture, non-economic considerations are handled in separate analyses or qualitative assessments, while EA informs choices by comparing economic value. If a political development would change costs or benefits, that economic effect would be captured, but forecasting political outcomes itself isn’t what EA is designed to do.

Economic Analysis centers on the economic consequences of a program or decision—costs, benefits, and their timing, typically expressed in monetary terms or decision-relevant units. Non-economic factors like political effects, social impacts, or legal issues are outside EA unless they directly drive economic outcomes. So predicting political and other non-economic impacts isn’t the purpose of Economic Analysis. For a full decision picture, non-economic considerations are handled in separate analyses or qualitative assessments, while EA informs choices by comparing economic value. If a political development would change costs or benefits, that economic effect would be captured, but forecasting political outcomes itself isn’t what EA is designed to do.