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Introduction to Economics for Policy Analysis
1. Cost-benefit analysis (CBA) is distinct from financial analysis because
A. CBA is concerned only with non-monetary costs and benefits.
B. CBA is concerned with all social costs and social benefits.
C. financial outlays and receipts are not important for public policy.
D. financial analysis is not a useful decision tool.
2. “Social costs and benefits can differ from financial outlays and receipts because market
prices are sometimes distorted by market failure”.
3. Which of the following is not one of the main steps in a CBA?
A. Catalogue potential impacts and select measurement indicators.
B. Perform sensitivity testing & simulation.
C. Ensure that all costs and benefits are included no matter who experiences those costs
D. Calculate the impact on government finances.
4. The “referent group” for a CBA refers to
A. the group of existing policies to which the candidate policy will be compared.
B. the i...
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This document was uploaded on 03/03/2014.
- Spring '14