Answer to the above mentioned question is option 4 l.e. Depends on the type of uncertainty.
As uncertainty can either positive or negative, it can effect the cost-benefit analysis respectively.
QUESTION 18 What effect does uncertainty have on your estimate of the social discount rate? O...
Question Completion Status: QUESTION 16 Why might flood zone information not affect home prices? If homes in the zone have insurance If homes in the zone face the same insurance rates as homes outside the zone If homes in the zone do not flood this year If homes in the zone always flood QUESTION 17 If you are offered $10 one year from now, what is the present value if you discount the future at a rate of 33 %...
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA measure of future uncertainty A measure of how much richer people value extra consumption A measure of the social discount rate A measure of present value consumption QUESTION 11 Why might gamma discounting make sense? People do not discount at constant rates People do discount at constant rates People do not like the future as much as the present People like the future more...
QUESTION 36 Is the social discount rate a constant value? Yes, it is always positive No, it can vary over time Yes, it is fixed at the rate of growth of the economy O No, it is increasing as income increases
QUESTION 24 The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks o market interest rates reflect the demand for all investments O capital markets are not perfect capital markets are uncertain
Why must future net benefits be discounted in a cost-benefit analysis? Define social rate of discount in your own words. What are some of the difficulties in choosing an appropriate social rate of discount? How does the discount rate affect the net benefits and the ranking of public projects?
D | Question 2 1 pts In the "Ramsey Rule" for deriving a social discount rate, the parameter 8 (i.e. the pure rate of time preference) reflects our innate preference for the present over the future. Where does this preference come from? O Our sense of morbidity O Our sense of impatience. O Our sense of mortality e All of the above.
D | Question 2 1 pts In the "Ramsey Rule" for deriving a social discount rate, the parameter...
QUESTION 26 What is a generally accepted value for the social discount rate? 3% 20% 2.00% 0.20% 0%
QUESTION 10 What is the elasticity of the marginal utility of consumption? O A measure of future uncertainty O A measure of how much richer people value extra consumption A measure of the social discount rate O A measure of present value consumption
QUESTION 1 Find the uncertainty in the moment of interia Moment of interia of a disk depends on mass and radius according to this function m.r)-1/2 m r2 Your measured mass and radius have the following uncertainties 5m 329 kg and 5r086 m. What is is the uncertanty in moment of intería, δ·if the measured mass, m-2717 kg and the measured radius, r-646 m? Units are not needed in your answer. QUESTION 2 Find the uncertainty in the moment of...
QUESTION 44 Why is the choice of the social discount rate important for estimates of damage from climate change? O Climate change happens quickly Climate change damage happens for only a few years O Climate change damage will happen for many years into the future Damages are subject to inflation