Costs and Benefits Economics is a system of analysis used to understand how decisions are made in regards to public policy, business operations, and personal projects. It is based on the idea that decisions should be made with an understanding of the possible outcomes, both positive and negative, that will result from taking action. Costs and Benefits Economics involves analyzing all of the potential costs and benefits of a decision in order to make an informed choice about which option makes the most sense in terms of money, time, efficiency, and other resources. This type of analysis takes into account the short-term and long-term implications of various options so that an informed decision can be reached. Rather than blindly making choices without understanding consequences, Costs and Benefits Economics allows us to weigh the pros and cons objectively and make an educated choice for the best possible outcome.