Some analysts have argued that cost-benefit analysis does not take into account issues involving equity and is nothing more than an efficiency test. Do you agree with this statement?
What will be an ideal response?
The use of cost analysis can be designed to handle issues of equity. Generally, these inputs
need to be included in the model by making some assumptions about welfare gains and
losses.
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Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $95, the efficient quantity of satellites is
A) 0. B) 1. C) 2. D) 3.
From 2004 to 2006, the European Union budget was ________, private saving was ________ domestic investment, and foreign lending ________
A) balanced, roughly equal to, negligible B) balanced, less than, substantial. C) surplus, greater than, negligible D) in deficit, greater than, negligible
The U.S. debt problem is caused by the government only; individuals don't go into debt
a. True b. False Indicate whether the statement is true or false
If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).