4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is be classified as a public good. The benefit of the beautification initiative, as suggested by the survey, is $ cost, the college administrators and Suppose the college administrators estimate that the beautification initiative will cost $8,000. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 370 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $16. ▼ undertake the beautification initiative. . Thus, the visual appearance would Because the estimated benefit is An equal number of male and female students were surveyed. The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. than the Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check all that apply. Students believe that the initiative does not happen, the funds for the initiative will not be spent elsewhere.
4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is be classified as a public good. The benefit of the beautification initiative, as suggested by the survey, is $ cost, the college administrators and Suppose the college administrators estimate that the beautification initiative will cost $8,000. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 370 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $16. ▼ undertake the beautification initiative. . Thus, the visual appearance would Because the estimated benefit is An equal number of male and female students were surveyed. The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. than the Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check all that apply. Students believe that the initiative does not happen, the funds for the initiative will not be spent elsewhere.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:4. Cost-benefit analysis
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and
remodeling buildings, to make the campus more aesthetically pleasing.
For the students of the college, the visual appearance of the campus is
be classified as a public good.
The benefit of the beautification initiative, as suggested by the survey, is $
cost, the college administrators
and
Suppose the college administrators estimate that the beautification initiative will cost $8,000. To decide whether the initiative should be undertaken,
administrators conduct a survey of the college's 370 students, asking each of them their willingness to pay for the beautification project. The average
willingness to pay, as revealed by the survey, is $16.
▼ undertake the beautification initiative.
. Thus, the visual appearance would
Because the estimated benefit is
An equal number of male and female students were surveyed.
The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each
student accurately.
than the
Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check all
that apply.
Students believe that the initiative does not happen, the funds for the initiative will not be spent elsewhere.
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