The Economic Case
26 practice questions with explanations — 15 free to try
PassNova has 26 Better Business Cases Foundation practice questions on The Economic Case, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
The Economic Case: example questions & answers
3 worked examples with answers and explanations below. Try 15 Better Business Cases Foundation questions free in the browser; the full 26-question The Economic Case bank is part of PassNova Premium.
Which case is concerned with demonstrating that the preferred option delivers best public value through formal options appraisal?
- AThe Strategic Case
- BThe Economic Case✓
- CThe Management Case
- DThe Commercial Case
Answer: The Economic Case appraises options to identify the one that optimises public value (value for money), balancing costs, benefits and risks.
In the Economic Case, what is the purpose of moving from a 'long list' to a 'short list' of options?
- ATo agree the final contract terms
- BTo set the project's governance structure
- CTo confirm the available capital budget
- DTo reduce a wide range of possibilities to a manageable set for detailed appraisal✓
Answer: The long list captures the full range of possibilities, which is then filtered down to a short list of viable options for detailed cost-benefit appraisal.
What does 'optimism bias' refer to in the Economic Case?
- AThe preference for the cheapest available option
- BThe standard Green Book discount rate used to convert future costs and benefits into present-day values
- CThe natural tendency to be over-optimistic about a project's costs, benefits and timescales✓
- DA method of allocating risk to the private sector
Answer: Optimism bias is the demonstrated tendency for appraisers to be over-optimistic about project parameters; adjustments are applied to counter it.