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cost benefit analysis
Questions and Answers of
Cost Benefit Analysis
Imagine that you wanted to use a life-course model similar to the Alzheimer's disease model to estimate the net benefits of helping someone quit smoking. What would be the most important similarities
What information would be needed to estimate the net benefits of a state-wide Alzheimer's disease screening program for 65 year olds?
What weaknesses do you see in this CBA? If corrected, would they increase or decrease the expected NPV?
Why is there no consumer surplus included as a benefit?
Would you describe this study as a Distributional CBA?
An overlook in the state’s Scenic Park offers a spectacular view of Angel’s Lake and the surrounding countryside. The overlook is accessible to people in wheelchairs by a special park bus that
Figure C4.1 shows the effect of adding 183.6 million dozen eggs to the cage free market assuming a price elasticity of supply of 0.5. Recalculate the equilibrium price and quantity and the change in
CBAs have been conducted of six proposed projects. None of these projects are mutually exclusive and the agency has a sufficient budget to fund those that will make society better off. The findings
You are a decision-maker who has to decide whether to adopt the Tulsa IDA program on a permanent basis relying, in part, on the information provided by the CBA described in this case study.The case
Assuming that the elasticity of the value of statistical life with respect to income is between 0.5 and 1.2 and that the value of statistical life in the United States is between $4 million and $13
How much would the shadow price of a diploma change if the probabilities of high school graduates obtaining no further education, some college, and college graduation were 26 percent, 38 percent, and
How would the shadow price of a high school diploma change if the labor force participation rate for increase?
Blomquist and his colleagues predict that willingness-to-pay for a 10 percent expansion of KCTCS would be around $92.7 million. Do you think that this is a reasonable estimate? Why or why not?
a. Why did Blomquist and his colleagues believe that contingent valuation was needed to fully assess the value of a 10 percent expansion of KCTCS?b. Did their findings suggest that they were correct?
A worker, who is typical in all respects, works for a wage of $50,000 per year in a perfectly safe occupation. Another typical worker does a job requiring exactly the same skills as the first worker,
Child care services in a small Midwestern city cost $30 per day per child. The high cost of these services is one reason why very few mothers who are on welfare work; given their low potential wages,
If you were running a state welfare agency and had to choose one of the programs listed in the table, what information would you like in addition to that provided in the table?
If you were running a state welfare agency and had to choose one of the programs listed in the table, which table’s columns would you particularly focus upon? Why?
Using the scheme shown in Table 14.1, diagram the evaluation design used in each of the following demonstration programs.To evaluate a government training program that provides low-income,
If we take the survey results at face value, then it would be reasonable to interpret the $8.5 million annual willingness to pay as the aggregate annual option price. If the costs of the unit were
The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever) is $830 million. The annual net benefits will depend on the amount of rainfall: $36 million in a
Assume a project will result in benefits of $1.2 trillion in 500 years by avoiding an environmental disaster that otherwise would occur at that time.a. Compute the present value of these benefits
The following table gives cost and benefit estimates in real dollars for dredging a navigable channel from an inland port to the open sea.The channel would be navigable for seven years, after which
A government data processing center has been plagued in recent years by complaints from employees of back pain. Consultants have estimated that upgrading office furniture at a net cost of $430,000
A highway department is considering building a temporary bridge to cut travel time during the three years it will take to build a permanent bridge. The temporary bridge can be put up in a few weeks
a. Imagine Washington State is considering implementing a program that pays monetary awards to families when their high school age children meet certain goals (for example, school attendance,
Consider an individuals utility function over two goods, qmand qs, where m indicates the primary market in which a policy will have its effect and s is a related secondary
Recall exercise 2 from Chapter 5 in which a country imposes an import fee on the crude oil it imports. Imagine that all the crude oil imports to the country are made by ships owned by its nationals.
Recall exercise 2 from Chapter 5 in which a country imposes an import fee on the crude oil it imports. Assume that prior to the imposition of the import fee, the country annually consumed 900 million
Recall exercise 1 from Chapter 5 in which an increase in the toll on a highway from $.40 to $.50 would reduce use of the highway by 5,000 cars per week.a. Because of the reduced use of the
Consider the example presented in Figure 4.3. Compute the annual loss in consumer surplus for the price increase from $1.25 to $1.75.a. Assume a linear demand curve as per equation (4.7)b. Assume a
A person’s demand for gizmos is given by the following equation:q = 6 – 0.5p + 0.0002Iwhere,q is the quantity demanded at price p when the person’s income is I. Assume initially that the
Because of a recent wave of jewellery store robberies, a city increases police surveillance of jewellery stores. The increased surveillance costs the city an extra $500,000 per year, but as a result,
Three mutually exclusive projects are being considered for a remote river valley: Project R, a recreational facility, has estimated benefits of $20 million and costs of $16 million; project F, a
The effects of a tariff on imported kumquats can be divided into the following categories: tariff revenues received by the treasury ($8 million); increased use of resources to produce more kumquats