1. TRUE OR FLASE (20 points)
Instruction: Read each statement below carefully. Place True if you think the statement is correct. Place
False if you think the statement is incorrect.
Submission: September 29, 2021 before 5 p.m. Send (PM) your answers to my FB account (Jhumann
Nevik).
QUIZ
Introduction and Conceptual Foundations of Benefit Cost Analysis
Name:
Course and Year:
Subject:
1. Estimating the marginal benefit costs and benefits of the change in output can guarantee that
the attained is efficient.
2. Welfare changes can be determined on the basis of changes in the volumes and prices on
relevant markets, existing or otherwise.
3. Inflation must be taken account but it is vital to note that discounting has nothing to do with
inflation.
4. Benefit Cost Analysis is an output to decision-making.
5. In a Guardian’s point of view, spenders overestimate costs and underestimate benefits.
6. Benefit Cost Analysis is an accounting framework used to evaluate the financial consequences of
decisions.
7. The role of Benefit Cost Analysis in decision-making is to make discussions about policy as
objective as possible.
8. Ex ante Benefit Cost Analysis attempts to answer the question: was this policy a good idea?
9. It is important to try to include the full range of consequences of each project.
10. As assumed, the analyst’s perspective is the standard in Benefit Cost Analysis.
11. Guardians naturally prefer to use a financial market rate, which is generally higher than the
social discount rate.
12. Spenders are seen as primarily engaging in constituency-support analysis.
13. Spenders treat social benefits and monetary payments received by their constituents as costs.
14. To guardians, markets are almost always inefficient.
15. Ex ante Benefit Cost Analysis informs the decision about whether resources should be allocated
to that specific project or policy or not.
16. Sustainability and Corporate Social Responsibility have the same goal as to improve the welfare
of society as a whole.
17. The World Bank requires Benefit Cost Analysis and cost-effectiveness analysis for appraisal of all
projects.
18. Benefit Cost Analysis is restricted to the assessment of a measure.
19. Benefit Cost Analysis is synonymous with cost-effectiveness analysis.
20. In market transactions, the value of non-market goods are included such as wildlife viewing at a
park.
