Basic Economic Analysis Using T-Charts

Excerpts: This technical note is one of a series – providing information on carrying out economics analysis utilizing T-charts. T-charts are a simple way to conduct economic analysis through partial budgeting. A T-chart systematically identifies only the benefit and costs that change, in each alternative. This technique simplifies data collection and analysis. The T-chart also describes the resource setting, resource concerns, and the conservation system. There can be three levels of analysis using the T-chart: • Level I Includes only qualitative statements • Level II Qualitative statement plus units of measurement and dollars • Level III Complete economic or financial analysis.