113 review questions copy

18 recall question 15 suppose instead that if the

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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? A. $-200m B. $100m C. $200m D. $300m 19. Bellman’s optimality principle states that history is irrelevant to the assessment of the best way forward. A. True B. False 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 1. 2. 3. 4. 5. 6. 7. 8. B C A D A B D B 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.

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