What are accounting, or "shadow" prices for project appraisal? In what way do they differ from market prices, and why do we need them? Additional question or part of question: How can reference to world prices help countries gauge the real
opportunity costs of development projects?
The additional question would depend on supplemental coverage of the ideas of the Little-Mirrlees method project evaluation method.
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Unlike recent events in England, the United States has no recent history of bank failures.
Answer the following statement true (T) or false (F)
Proponents of using the inflation tax to finance government budget deficits argue that:
A. these deficits would be far worse otherwise. B. the economic slowdown produced by the inflation tax is preferable to the hyperinflation that would occur in the absence of the inflation tax. C. while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse. D. inflation is ultimately beneficial in the long run.
A possible benefit of unions is lower turnover among workers, which in turn leads to lower training costs.
Answer the following statement true (T) or false (F)
The short-run industry supply curve slopes up because
A. the firms eventually experience diseconomies of scale. B. the higher price is needed to get more firms to enter the industry. C. the law of diminishing marginal product applies in the short run. D. wages increase as the industry increases output.