Answer the following statement(s) true (T) or false (F)
1. Achieving cost-effectiveness means that the present value of costs (PVC) is minimized for some pre-established benefit goal.
2. To achieve allocative efficiency, the present value of net benefits (PVNB) must be minimized.
3. In conducting a benefit-cost analysis, it is more difficult to assign a dollar value to costs than to benefits.
4. Selecting the social discount rate is among the issues debated in the use of benefit-cost analysis for public policy evaluation.
1. True
2. False
3. False
4. True
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________ in the expected future domestic exchange rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
If the Battle of the Sexes game were played sequentially,
A) one of the two pure strategy equilibria would become the only equilibrium. B) the two pure strategy equilibria would alternate in being the equilibrium seen in each round of the game. C) only the mixed strategy equilibrium would exist. D) only the dominant strategy equilibrium would exist. E) the equilibrium would not change.
In long-run equilibrium for a single-price monopolist,
A. marginal revenue equals price. B. output is at the level where short-run and long-run marginal costs are the same. C. the plant size is always the one at the bottom of the long-run ATC curve. D. marginal cost equals ATC.
Which of the following groups of people would most likely pay a higher percentage of their wages on excise tax?
a. doctors earning $400,000 per year b. engineers earning $95,000 per year c. teachers earning $55,000 per year d. cashiers earning $25,000 per year