Which best describes the decision criterion for implementing either a private or public project? a) Costs should not exceed benefits. b) A cost-to-benefit ratio should be less than unity. c) Benefits should exceed costs. d) All of the above. e) None of the above.
1. Which best describes the decision criterion for implementing either a private or public project?
a) Costs should not exceed benefits.
b) A cost-to-benefit ratio should be less than unity.
c) Benefits should exceed costs.
d) All of the above.
e) None of the above.
2. Which of the following does not represent a potential issue when using the contingent valuation method?
a) Precise explanation of environmental attribute being valued.
b) Possibility of respondents ignoring income constraint and ignoring availability of substitutes of goods being valued.
c) Possibility of respondents misstating their willingness to pay.
d) Inappropriate for estimating non-use value of resources.
3. The rate at which future money is discounted in a cost-benefit analysis is referred to as the…
a) Real rate
b) Nominal inflation rate
c) Discount rate
d) Time preference rate
e) Social rate
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