Answered: Should the social discount rate…

Should the social discount rate represent the rate that could have been earned had the funds not been removed from the private sector?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Consider Susan who lives in a small town. A charity is planning to establish a public library in her…

A: Marginal benefit (MB) refers to the additional benefit or utility that an individual receives from…

Q: Discuss an implementation plan that builds upon your strategy for the specific issue of Economic…

A: Step 1: Economic inequality refers to the disparity in the distribution of wealth, income, and…

Q: Show how moving from a lump sum tax to a linear tax affects outcomes in terms of output and work…

Q: Why are broad social indicators rarely used as measures of public program performance?

A: Social and economic public programs are government-funded initiatives designed to address various…

Q: What level of social-political complexity is redistribution (as the basic force of economic…

A: Economics is a vast and multifaceted social science that can be defined in several ways, depending…

Q: Which of the following is true about social insurance programs? a-all of these b-Individuals can…

A: Government administers a set of insurance programs which are referred to as social insurance…

Q: Discuss how policy variables, government spending and taxation, are used to influence economic…

A: A policy through which the government tends to adjusts its levels of spending and tax rates for…

Q: If you have two major firms that are government-owned but do not use taxes to operate, is…

A: The social welfare is maximized when the economy is efficient. The social welfare is the summation…

Q: What is the main purpose of a social welfare function? O To help us match buyers and sellers in…

A: A social welfare function is a mathematical depiction of a society's total well-being that accounts…

Q: Some advocates of anti-poverty programs claim that fighting poverty is a public good. Explain what…

A: Some advocates of anti-poverty programs claim that fighting poverty is a public good. Answer:…

Q: How will you build or draw upon existing coalitions to advance your issue in Economic Inequality?

A: References:https://ctb.ku.edu/en/table-of-contents/assessment/promotion-strategies/start-a-coaltion/…

Q: Consider the need for an External Interest Rate?

A: There is a strong need for the external interest rate because it helps in making financial…

Q: The marginal net benefit (MNB) curve is given by the: A Difference between the market demand and the…

A: The marginal net benefit is the difference between marginal benefit and marginal cost. i.e.,…

Q: How is a lack of income is the root cause of most social problems?

A: Income:Income refers to the money which an individual or business gets in return for giving work.…

Q: Governments sometimes provide social programs universally to everyone, and sometimes government…

A: Social Security refers to the provision of a payment that the government makes to the public in…

Q: Many economists believe that a more effective way to supplement the income of the poor is through a…

A: A person or firm is required by law to pay taxes to the government based on their income or…

Q: It is fair to discriminate in the amount of benefits for life and health policies: between…

A: When talking about discrimination, it refers to the situation when an individual is unfairly treated…

Q: The eight statements involve the redistribution of income expenditure programs. Match the given…

A: Income inequality is growing across the world resulting in poverty and unequal opportunities.…

Q: Why do certain states suffer more economically than others? Please explain briefly

A: Solution - There are many reasons certain states suffer more economically than others some of them…

Q: Who has power when it comes to your social inequality in your community? Note that power is likely…

A: These institutions frequently engage in interactions with one another, and power dynamics are…

Q: What is the government policy that supports research and development (R&D), doesn't involve the…

A: The process through which there is the creation of improved or new technologies that could help in…

Q: How does the optimal size of the subsidy for education vary with the size of the (positive)…

A: An externality refers to the impact of one person's actions on the well-being of a bystander. The…

Q: What is the market failure that justifies goverment involvement in the economy

A: Governments intervene in markets to deal with inefficiency. In an optimally efficient market,…

Q: explain market based structure and explain your reason.Provide an example that will explain…

A: Quantity of labour can be influenced by two factors which are number of workers and other factor is…

Q: What discount rates should be used for valuing future benefits and costs in social cost-benefit…

A: The SCBA {"social cost-benefit analysis"} is described as a decision that weighs and measures the…

Q: Describe two activities by the government that can cause allocative inefficiency.

A: In a competitive market, the equilibrium price of the good is determined by the market forces of…

Q: One of the problems of allowing goods and services to be distributed solely by the market is that…

A: The following problem has been solved as follows:

Q: What is the socially optimal number of years of schooling for each citizen? optimal schooling: 14…

A: Externality refers to the situation of a person engaging in activities that may influence the…

Question

Should the social discount rate represent the rate that could have been earned had the funds not been removed from the private sector?

Expert Solution

Step 1

The concept of social discount rate is widely used in determining the discounting value of the funds allocated in the projects concerning climate change.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Please answer 1, 2, and 3! Susan is a single mother with three children. She can earn $8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $16,000 per year. For every $1 of income she earns, her level of government support will be reduced by $1. The table below is patterned after Table 15.8 from the text. Number of Work Hours Earnings from Work Government Benefits Total Income 2000 $16,000 $0 $16,000 1600 $16,000 1200 $16,000 800 $16,000 400 $3200 $12,800 $16,000 0 $0 $16,000 $16,000 Complete the table. Is this program an example of a poverty trap? Explain your answer. If this program is an example of a poverty trap, how can this program be altered to avoid this problem?
Differentiate between primary benefit and secondary benefit?
Consider a social security system which taxes the young a tax ? in period t to pay the old asubsidy ? in the same period. The rate of growth of population is n>1 and the real interest is r.a) Write down the government budget constraint.b) Derive the lifetime budget set.c) Does this social security system increase the wealth of future generations? Explain.
Which of the following would be an example of economic equity? Everyone makes as much money as the market allows. A doctor gets paid more than a custodian, but the custodian still makes a livable salary for their work. Everyone would get a monthly $1,000 check from the government. Everyone who worked would be paid the same.
Suppose the teacher for your course, "Principles of Economics" is a libertarian and adheres strictly by its principles in running your economics class. What policies would you expect your teacher to institute? Policies a Libertarian Would Enforce Policies a Libertarian Would Not Enforce The teacher, seeing grade inequality, decides to give points from the best student's test to the worst's students test. The teacher decides to give everyone in the class an A. The teacher punishing a student for cheating on her income equality and poverty homework assignment. Grade the class on a curve to ensure even grade distribution. When proctoring a test, your teacher requires all students to be given the test face down and all turn over your tests at the same time so that no one has a time advantage.
Why do you suppose that economists commonly refer to the Why do you suppose that economists commonly refer to the elimination of all disability payments from people able to work part-time as a “tax” imposed on a disabled individual who is willing and able to earn part-time wage income? Why do you suppose that economists commonly refer to the
Explain any two causes of underdevelopment operating in the economy?