Exam 8: Cost-Benefit Analysis

Which of the following is NOT a problem with using contingent valuations?

If the present discounted value of $400 next year is $380 this year,what is the implied rate of interest?

The county supervisor sends out a survey via U.S.mail asking residents how much they are each willing to pay toward a new community swimming pool.This is an example of:

The value of an input in its next best use is the:

_____ analysis consists of a comparison of the projected expenses and benefits of public goods projects to decide if they should be undertaken.

The benefits of a high-speed rail system from Sacramento to San Diego do NOT include:

Suppose a high-speed rail system is proposed that will save commuters from the suburbs a lot of valuable time.If the high-speed rail system is built,the value of homes in the suburbs will increase because of the easier commute.When estimating the potential benefits of the high-speed rail system:

The method preferred by economists for valuing life is to use:

The opportunity cost of an input that is sold in a perfectly competitive market is:

Based on the revealed preference approach,the consensus value placed on a life is approximately equal to:

The county supervisor will determine which company should construct the new public swimming pool by collecting bids from various contractors.This is an example of:

The search for the least costly way of providing a desired public good is:

Suppose government can pursue up to three projects.The first has benefits of $1,080 and costs of $1,000; the second has benefits of $1,180 and costs of $1,000; the third has benefits of $1,230 and costs of $1,000.Suppose that it costs $0.20 for the government to raise a dollar in revenues.Which project(s)should the government pursue?

A city is trying to estimate the most money it should offer to contractors as an incentive for them to finish a disruptive road project early.The transportation project lengthens transport times by 10 hours per week for 40,000 workers.Assume that all workers are paid $10 per hour in a perfectly competitive labor market.What is the most that the city should pay to the contractors as an incentive for completing the project four weeks early?

Suppose you have 3 years to live and you value each year of life at $7 million but have a discount rate of 5%.How much do you value the rest of your life in today's dollars?

Asking someone to quantify how much he or she would benefit from a new highway is an example of:

Suppose the value of life is estimated by comparing the earnings and probabilities of death from working on a fishing boat in Alaska with the earnings and probabilities of death from working in a fish processing plant in Alaska.The analysis concludes that a year of life is valued at $6 million.If risk-loving people take the jobs on the boats and risk-averse people take jobs at the processing plants,the estimate will:

Which of the following statements is TRUE of a cost-benefit analysis of a potential government project?

The county supervisor is considering building a community pool and has gathered data on how much residents are willing to pay.He sums up all of the valuations he has received and compares that number to the estimated cost.This is an example of:

In a perfectly competitive labor market with freely adjusting hours,what is the value of an hour?