Cost-effectiveness analysis is defined as

• A. A variant of benefit-cost analysis used when expected benefits are difficult to quantify
• B. Identical to cost-benefit analysis
• C. Unrelated to economic evaluation
• D. Based solely on qualitative judgments

Answer: (A)

Cost-effectiveness analysis focuses on comparing options by their costs relative to a specific health outcome measured in natural units (such as deaths averted, life-years gained, or cases detected) rather than converting benefits into dollars. This approach is used when the benefits are hard to quantify monetarily, so it serves as a variant of benefit-cost analysis that relies on non-monetary outcomes. It isn’t identical to cost-benefit analysis, which monetizes benefits; instead, it stays in natural units to assess value. It remains a standard method within economic evaluation and uses quantitative data on both costs and effects rather than being purely qualitative. So, cost-effectiveness analysis is best described as a variant of benefit-cost analysis used when expected benefits are difficult to quantify.