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.