Objectives of Social Cost Benefit Analysis

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What is the main focus of Social Cost Benefit Analysis (SCBA)?

Evaluating public investment only

Maximizing net social benefit (correct)

Determining the impact on market imperfections

Assessing the impact on savings and investment levels

Which of the following is NOT a main focus of SCBA according to the text?

Impact of the project on income distribution

Concern for market imperfections (correct)

Contribution of the project towards merit wants

Economic benefits of the project in terms of shadow prices

Why did SCBA emerge as different from CBA according to the text?

Focus on market imperfections

Inability to reflect social values (correct)

Evaluation of externalities

Assessment of project self-sufficiency

What does SCBA primarily consider in terms of a project's impact on society?

Income distribution Signup and view all the answers

Which aspect distinguishes SCBA from CBA with respect to project appraisal?

Concern for savings Signup and view all the answers

What does the term 'numeraire' refer to in the context of shadow pricing?

A unit of account in which values of inputs and outputs are expressed Signup and view all the answers

When is a good/service considered tradable according to the text?

When import/export demand must be met by the domestic industry Signup and view all the answers

What are the three sources of shadow pricing according to the UNIDO approach?

Changes in total consumption, changes in production, changes in exports/imports Signup and view all the answers

Why do taxes pose difficulties when calculating shadow prices according to the text?

Taxes should be included when a project diverts non-traded inputs from other producers Signup and view all the answers

What is the basis of shadow pricing when the project's impact is on consumption in the economy?

Consumer willingness to pay Signup and view all the answers

What does Stage 4 of the UNIDO method focus on?

Measurement of distribution impact Signup and view all the answers

In the UNIDO approach of Social Cost Benefit Analysis, what is the indicator of financial profitability of a project?

Net Present Value (NPV) Signup and view all the answers

What is the main purpose of assigning shadow prices to inputs and outputs in the UNIDO approach?

To reflect the real value of resources to society Signup and view all the answers

How is the Net Present Value (NPV) calculated in the UNIDO approach of Social Cost Benefit Analysis?

$Vt - Ct - I0$ Signup and view all the answers

What term is used to describe the inputs and outputs at their market prices in the UNIDO approach of Social Cost Benefit Analysis?

Nominal Values Signup and view all the answers

Which factor determines the financial feasibility of a project in the UNIDO approach of SCBA?

$NPV > 0$ Signup and view all the answers

What does the UNIDO approach consider as an essential step before an economic evaluation can be conducted for a project?

Completing a financial analysis Signup and view all the answers

Objectives of Social Cost Benefit Analysis

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