For the students of the college, the visual appearance of the campus is _______(rival/nonrival) and ______(nonexcludable/excludable). Thus, the visual appearance would be classified as a public good.Suppose the college administrators estimate that the beautification initiative will cost $34,980. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 1,460 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $32.The benefit of the beautification initiative, as suggested by the survey, is $_______. Because the estimated benefit is _______(less/greater) than the cost, the college administrators _______(should not/should) undertake the beautification initiative.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.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.1. Students believe they will eventually be charged their willingness to pay.2. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere. 4. Cost-benefit analysisA local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees andremodeling buildings, to make the campus more aesthetically pleasing.For the students of the college, the visual appearance of the campus isbe classified as a public good.The benefit of the beautification initiative, as suggested by the survey, isthe college administratorsSuppose the college administrators estimate that the beautification initiative will cost $34,980. To decide whether the initiative should be undertaken;administrators conduct a survey of the college's 1,460 students, asking each of them their willingness to pay for the beautification project. Theaverage willingness to pay, as revealed by the survey, is $32undertake the beautification initiative.andThe calculation of the benefit of the beautificationstudent accurately.Thus, the visual appearance wouldBecause the estimated benefit isthan the costelied on the ability of the administrators to capture the true willingness to pay of each Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check allthat applyStudents believe they will eventually be charged their willingness to pay.Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.

Answered: For the students of the college, the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For the students of the college, the visual appearance of the campus is _______(rival/nonrival) and ______(nonexcludable/excludable). Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $34,980. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 1,460 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $32. The benefit of the beautification initiative, as suggested by the survey, is $_______. Because the estimated benefit is _______(less/greater) than the cost, the college administrators _______(should not/should) undertake the beautification initiative. 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. 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. 1. Students believe they will eventually be charged their willingness to pay. 2. Students believe that if 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
the college administrators
Suppose the college administrators estimate that the beautification initiative will cost $34,980. To decide whether the initiative should be undertaken;
administrators conduct a survey of the college's 1,460 students, asking each of them their willingness to pay for the beautification project. The
average willingness to pay, as revealed by the survey, is $32
undertake the beautification initiative.
and
The calculation of the benefit of the beautification
student accurately.
Thus, the visual appearance would
Because the estimated benefit is
than the cost
elied on the ability of the administrators to capture the true willingness to pay of each

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 they will eventually be charged their willingness to pay.
Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.

Expert Solution

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Public goods are exceptional in economics because everyone benefits equally from them and anyone can use them without having to pay for them. Many people are aware that they do not need to pay in order to gain from them because of their qualities. They are referred to as free riders by economists.

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