Suppose Head Start proponents could show that it saves $2000 per child in reduced need for special education and $3000 per child in reduced need for children to repeat first or second grade, but that these benefits accrue two to three years after program participation. Suppose there are no other benefits and that the program costs $4000 per child. With this data, you
A. would have to argue that Head Start is simply the "right" thing to do for the kids.
B. could not conclude that the program makes sense, because present values depend on the interest rate.
C. could conclude that the program makes sense as an investment.
D. would have to concede that the program is not worth the costs.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. A disadvantage of the survey approach is that polluting sources might not be sufficiently well informed to provide good estimates. 2. According to available U.S. data, spending on pollution abatement and control has grown fairly steadily over time. 3. Expenditures on research and development represent the majority of spending on pollution and control in the United States. 4. According to the U.S. data presented in the text, the highest proportion of operating and capital abatement costs is on recycling. 5. Newly proposed controls on GHG emissions from motor vehicles are expected to elevate automobile prices.
If one person's consumption of a good does not preclude another's consumption, the good is said to be
A. excludable. B. rival in consumption. C. nonrival in consumption. D. nonexcludable.
The government's holdings of foreign currency is recorded in the
A) money account. B) current account. C) currency account. D) official settlements account. E) capital and financial account.
The marketing people for AT&T believe that if they lower the price of long-distance phone calls by 5 percent, their quantity demanded will increase by 15 percent. If they are correct in their belief, then
A) the demand for long-distance phone calls is price inelastic. B) the total revenue from long-distance phone calls will increase if they lower the price. C) the demand for long-distance phone calls is income elastic. D) the total revenue from long-distance phone calls will decrease if they lower the price.