The regulatory basis for Economic Analysis is?

The regulatory basis for Economic Analysis is?

• A. FAR
• B. OMB A-94
• C. DFARS
• D. GAAP

Answer: (B)

Economic analysis in federal decision-making is guided by OMB Circular A-94, which sets the standards for benefit-cost analysis of federal programs and regulations. It prescribes how to monetize benefits and costs, define scope and time horizons, apply discounting to future impacts, and present results in a way that helps decision-makers compare alternatives. This framework ensures consistency across agencies when evaluating regulatory options. The other options don’t provide the required methodology for economic analysis: procurement rules (FAR) and its defense variant (DFARS) govern contracting, while GAAP covers financial accounting standards rather than regulatory economic evaluation.

Economic analysis in federal decision-making is guided by OMB Circular A-94, which sets the standards for benefit-cost analysis of federal programs and regulations. It prescribes how to monetize benefits and costs, define scope and time horizons, apply discounting to future impacts, and present results in a way that helps decision-makers compare alternatives. This framework ensures consistency across agencies when evaluating regulatory options. The other options don’t provide the required methodology for economic analysis: procurement rules (FAR) and its defense variant (DFARS) govern contracting, while GAAP covers financial accounting standards rather than regulatory economic evaluation.