Policy Tradeoffs Glossary

Systematic evaluation comparing total costs against total benefits, in monetary terms, to determine net gain for society.

Rate used to convert future costs and benefits into present value. Higher rates give less weight to future outcomes.

Resource allocation maximizing total output or welfare. An efficient policy achieves goals with least waste.

Fairness in distribution of resources, opportunities, and burdens. Equity-focused policies reduce disparities between groups.

Evaluating additional costs and benefits of incremental policy changes, rather than all-or-nothing assessment.

Total benefits minus total costs. Positive net benefit means the policy creates more value than it consumes.

The value of the best alternative forgone when a choice is made. In policy, what society gives up when resources go to one program instead of another.

A policy incentive that unintentionally encourages behavior opposite to what was intended.

The degree a policy can gain sufficient political support for adoption, considering public opinion, interest groups, and legislative dynamics.

Costs of complying with government regulations: paperwork, process changes, inspections, and fees.

Any individual, group, or organization affected by or interested in a policy decision.

Policy outcomes not anticipated by policymakers. Can be beneficial, harmful, or perverse (opposite of intended).