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Unformatted text preview: 18. Recall Question 15. Suppose instead that if the games were cancelled in 2007, all of
the costs incurred to that point could be recovered. As at 2007, what is the continuation
payoff for the games?
19. Bellman’s optimality principle states that history is irrelevant to the assessment of the
best way forward.
20. Financial analysis
A. focuses on financial outlays and receipts associated with an investment.
B. is one component of economic analysis.
C. is not sufficient for the assessment of public policy.
D. All of the above. 9 Answer Key
There are two points to note here. First, the distinction between monetary and
non-monetary costs is entirely separate from the distinction between explicit and
implicit costs. In particular, non-monetary costs can be either explicit or implicit.
Second, the distinction between explicit and implicit costs can be useful but is not
always clear. In the case of monetary costs, the distinction between explicit and
implicit costs is fairly clear: explicit costs are out-of-pocket costs while implicit
costs are monetary amounts that could have been gained but are not....
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This document was uploaded on 03/03/2014.
- Spring '14