17 Questions
What is the main focus of Social Cost Benefit Analysis (SCBA)?
Maximizing net social benefit
Which of the following is NOT a main focus of SCBA according to the text?
Concern for market imperfections
Why did SCBA emerge as different from CBA according to the text?
Inability to reflect social values
What does SCBA primarily consider in terms of a project's impact on society?
Income distribution
Which aspect distinguishes SCBA from CBA with respect to project appraisal?
Concern for savings
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
When is a good/service considered tradable according to the text?
When import/export demand must be met by the domestic industry
What are the three sources of shadow pricing according to the UNIDO approach?
Changes in total consumption, changes in production, changes in exports/imports
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
What is the basis of shadow pricing when the project's impact is on consumption in the economy?
Consumer willingness to pay
What does Stage 4 of the UNIDO method focus on?
Measurement of distribution impact
In the UNIDO approach of Social Cost Benefit Analysis, what is the indicator of financial profitability of a project?
Net Present Value (NPV)
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
How is the Net Present Value (NPV) calculated in the UNIDO approach of Social Cost Benefit Analysis?
$Vt - Ct - I0$
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
Which factor determines the financial feasibility of a project in the UNIDO approach of SCBA?
$NPV > 0$
What does the UNIDO approach consider as an essential step before an economic evaluation can be conducted for a project?
Completing a financial analysis
Learn about the objectives of Social Cost Benefit Analysis (CBA) which focuses on maximizing net social benefit and evaluating public investments. Understand how it determines economic benefits, impact on saving and investment levels in the society.
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