The regulatory basis for Economic Analysis is which regulation?

The regulatory basis for Economic Analysis is which regulation?

• A. OMB A-90
• B. OMB A-92
• C. OMB A-93
• D. OMB A-94

Answer: (D)

The key idea here is that economic analysis in the regulatory process uses a standardized framework for evaluating federal rules. This framework is provided by the OMB Circular on regulatory analysis, which lays out how to conduct benefit-cost analyses for proposed and final regulations. It tells agencies how to identify and quantify benefits and costs, monetize those impacts where possible, choose an appropriate discount rate, set the time horizon, and perform sensitivity analyses. It also guides how results should be presented to support decision-making under regulatory policy. That framework is what makes the analysis consistent across different rules and aligned with overarching regulatory oversight. The other circulars focus on different topics—such as general cost principles or budgetary management—and do not establish the standard methods for economic analysis of regulatory actions.

The key idea here is that economic analysis in the regulatory process uses a standardized framework for evaluating federal rules. This framework is provided by the OMB Circular on regulatory analysis, which lays out how to conduct benefit-cost analyses for proposed and final regulations. It tells agencies how to identify and quantify benefits and costs, monetize those impacts where possible, choose an appropriate discount rate, set the time horizon, and perform sensitivity analyses. It also guides how results should be presented to support decision-making under regulatory policy.

That framework is what makes the analysis consistent across different rules and aligned with overarching regulatory oversight. The other circulars focus on different topics—such as general cost principles or budgetary management—and do not establish the standard methods for economic analysis of regulatory actions.