Cost-Benefit Analysis Economics is a business tool used to evaluate the potential financial impact of making a decision. It involves weighing all the costs against the expected benefits and risks to assess whether it’s worth investing resources in pursuing a goal or project. By taking into account both short-term and long-term effects, businesses can make decisions that maximize their return on investment. Cost-Benefit Analysis Economics offers businesses a practical way to weigh the pros and cons and determine whether a particular action is worth pursuing.