In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 7% social discount rate. If it had instead used a 8% social discount rate, the present value of the policy's net benefits would have been ; if it had used a 6% social discount rate, the present value of the policy's net benefits would have been A) Lower; lower. B) Lower; higher. C) Higher; lower. D) Higher; higher.

In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 7% social discount rate. If it had instead used a 8% social discount rate, the present value of the policy's net benefits would have been ; if it had used a 6% social discount rate, the present value of the policy's net benefits would have been A) Lower; lower. B) Lower; higher. C) Higher; lower. D) Higher; higher.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Costs Of Taxation

Section: Chapter Questions

Problem 3CQQ

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In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been if it had used a 4% social discount rate, then the net present value of the policy would have been O a. higher; higher. O b. lower; higher. O c. lower; lower. O d. higher; lower. In a recent cost-benefit analysis of a proposed regulation that would have generated negative net benefits in the present but positive net benefits in the future, the government used a 8% social discount rate. If it had used a 10% social discount rate instead, then the net present value of the policy would have ; if it had used a 4% social discount rate, then the net present been value of the policy would have been O a. higher; lower. O b. higher; higher. O c. lower; lower. O d. lower; higher.
In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government-used a 5% social discount rate. If it had instead used a 7% social discount rate, the net present value of the policy would have been ; if it had used a 10% social discount rate, the net present value would have been Select one: a. higher; lower. b. lower; higher. c. somewhat lower; much lower. d. much higher; somewhat higher. e. somewhat higher; much higher. f. much lower; somewhat lower.
In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been __; if it had used a 4% social discount rate, then the net present value of the policy would have been a. lower; lower. O b. higher; lower. O c. higher; higher. d. lower; higher. Clear my choice
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Consider a labor market in which workers are paid the minimum wage. When will it matter for tax incidence whether a payroll tax is imposed on workers or on employers? A.Normally, the statutory imposition of a tax is irrelevant to the actual economic incidence because the party on whom legal liability rests will shift the burden if it can, and the less-elastic party will bear most of the burden of the tax. However, a tax imposed on employers can be shifted to workers earning the minimum wage; employers are not legally constrained from lowering wages further, so they will not bear the full burden. On the other hand, a tax imposed on workers will not be at least partially shifted to employers if the demand for labor is inelastic. Therefore, minimum-wage employers with elastic demand for labor are likely to share some of the burden of a tax imposed on employees. B.Normally, the statutory imposition of a tax is relevant to the actual economic incidence because the party on whom legal…
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