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project appraisal

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Câu Hỏi 1
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This figure illustrates an output of a large-scale project which is subject to distorting subsidy.
What is the economic benefit of replaced quantity supplied (delta Qs)?
a.
QCDQ2
b.
Q1ABQ
c.
Q1EDQ2
d.
Q1ABCDQ2
Phản hồi
The correct answer is:
Q1ABQ
Câu Hỏi 2
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Is this statement TRUE or FALSE? "Financial analysis does not provide any information for
referent group analysis of a project".
Select one:
True
False
Phản hồi
The correct answer is 'False'.
Câu Hỏi 3
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The Casino has given you $100 worth of complimentary chips which must be wagered this
evening. There are two tables – roulette and blackjack. The expected value of $100 bet on
roulette is $83, and the expected value of $100 bet on blackjack is $86. What is the opportunity
cost of betting the chips on blackjack?
a.
$100
b.
$86
c.
$0
d.
$83
Phản hồi
The correct answer is:
$83
Câu Hỏi 4
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This figure illustrates the benefit of a small-scale project's output in a competitive market. What
about the financial benefit and economic benefit of this output?
a.
Financial benefit = economic benefit
b.
Financial benefit < economic benefit
c.
Financial benefit > economic benefit
Phản hồi
The correct answer is:
Financial benefit = economic benefit
Câu Hỏi 5
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Which of the following statements are correct?
a.
Investment is a particular allocation of scarce resources in the present which will result in a flow of output
in the future.
b.
An investment project is a particular allocation of scarce resources in the present which will result in a
flow of output in the future.
c.
An investment project involves diverting scarce resources from the production of goods for current
consumption to the production of capital goods which will contribute to increasing the flow of consumption
goods available in the future.
d.
Investment involves diverting scarce resources from the production of goods for current consumption to
the production of capital goods which will contribute to increasing the flow of consumption goods available
in the future.
Phản hồi
The correct answers are:
Investment involves diverting scarce resources from the production of goods for current consumption to
the production of capital goods which will contribute to increasing the flow of consumption goods available
in the future.,
An investment project is a particular allocation of scarce resources in the present which will result in a
flow of output in the future.
Câu Hỏi 6
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A foreign firm is considering a project which has present values of benefits and costs, at market
prices, of $100 and $60 respectively. If the project goes ahead, tax of $20 will be paid to the
host country, and pollution costing the host country $10 will occur. Assuming that the owners of
the foreign firm are not part of the referent group, what are the net present values generated by
the referent group analysis?
a.
$10
b.
$30
c.
$20
d.
$40
Phản hồi
The correct answer is:
$10
Câu Hỏi 7
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Within above framework, which area contains the net benefits to the domestic companies or
domestic contractors?
a.
C
b.
D
c.
B
d.
A
Phản hồi
The correct answer is:
A
Câu Hỏi 8
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A foreign company proposes to construct a project at a cost of $100 which will use $50 worth of
power at the market price. The output of the project will be worth $400 on the world market and
the company will pay $100 in income tax. The shadow cost of producing the extra power is
$30. What is the efficiency net benefit?
a.
$150
b.
$250
c.
$120
d.
$270
Phản hồi
The correct answer is:
$270
Câu Hỏi 9
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Is this statement TRUE or FALSE? "Financial cost of using labour is simply the price paid to the
employees. This price is often measured by the market wage".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 10
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This figure illustrates an imported input of a project which is subject to import duty. What is the
economic cost of this imported input?
a.
ABCD
b.
QCDQ'
c.
QABQ'
Phản hồi
The correct answer is:
QCDQ'
Câu Hỏi 11
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Within above framework, which area contains the net benefits to the domestic banks which
provide credit to the project?
a.
D
b.
C
c.
A
d.
B
Phản hồi
The correct answer is:
A
Câu Hỏi 12
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This is the NPV@10% results of the ICP project. What is the NPV of market analysis?
a.
$214.5
b.
$54.8
c.
$202.0
d.
$159.7
Phản hồi
The correct answer is:
$202.0
Câu Hỏi 13
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A project uses $200 worth of skilled labour to produce output valued on the domestic market at
$400. Domestic consumers could obtain that same quantity of output from abroad at a cost of
$300 c.i.f. plus $100 tariff. What is the market net benefit of the project?
a.
$0
b.
$200
c.
$100
d.
$50
Phản hồi
The correct answer is:
$200
Câu Hỏi 14
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What are the main postulates of applied welfare economics which are popularly used in
shadow-pricing a projects' market inputs and outputs?
a.
Postulate 2: The competitive supply price for an incremental unit of a good or service measures its
economic resource cost.
b.
Postulates 1, 2, 4 are correct.
c.
Postulate 1: The competitive demand price for an incremental unit of a good or service measures its
economic value to the consumer and hence its economic benefit.
d.
Postulate 3: Costs and benefits are added up without regard to who the gainers and losers are.
e.
Postulates 1, 2, 3 are correct.
f.
Postulate 4: A dollar is valued at a dollar regardless of whether the benefit of the dollar accrues to a
consumer or a supplier, or to a high-income or a low-income individual.
Phản hồi
The correct answer is:
Postulates 1, 2, 3 are correct.
Câu Hỏi 15
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Is this statement TRUE or FALSE? "If a project causes a relatively small change in market price,
the financial receipts from the sale of the output will be equal to the gross economic benefits
and the financial expenditures on the inputs will be equal to their economic costs".
Select one:
True
False
Phản hồi
The correct answer is 'False'.
Câu Hỏi 16
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Within above framework, which area contains the net benefits to the foreign consultants?
a.
B
b.
C
c.
D
d.
A
Phản hồi
The correct answer is:
D
Câu Hỏi 17
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Which of the following analyses is described by the following statement: "The cash flow is
obtained in a similar way to the market appraisal, except that some of the prices used to value
inputs or outputs are shadow prices, or are derived from the application of nonmarket valuation
techniques"?
a.
Referent group analysis
b.
Private analysis
c.
Project analysis
d.
Efficiency analysis
Phản hồi
The correct answer is:
Efficiency analysis
Câu Hỏi 18
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A worker values her leisure time at $7 per hour. She is offered work on a public project at a
wage of $22 per hours, but if she accepts she will forfeit unemployment benefits equivalent to
$13 per hour. What is the employment benefit to the economy per hour of her time on the
project (i.e. labour rent)?
a.
$13 per hour
b.
$20 per hour
c.
$0 per hour
d.
$15 per hour
Phản hồi
The correct answer is:
$15 per hour
Câu Hỏi 19
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This figure illustrates an input of a project which is subject to a distorting indirect tax. What is the
economic cost if the project input is met by additional supply (delta Qs)?
a.
QDCQ2
b.
Q1ABDCQ2
c.
Q1ABQ
d.
Q1AEQ2
Phản hồi
The correct answer is:
QDCQ2
Câu Hỏi 20
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This figure illustrates the benefit of a project's output which is subject to a value-added tax (i.e.
at retail level). The quantity of the project's output is Qs1Qd1. What is the total revenue of this
quantity?
a.
Qs1ABQo
b.
Qs1AFQd1
c.
QoCEQd1
d.
Qs1ABCEQd1
Phản hồi
The correct answer is:
Qs1AFQd1
Câu Hỏi 21
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Is this statement TRUE or FALSE? "In the absence of distortions, if a project causes a relatively
small change in market price, the financial receipts from the sale of the output will be equal to
the gross economic benefits and the financial expenditures on the inputs will be equal to their
economic costs".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 22
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This is the NPV@10% results of the ICP project. What is the NPV of referent group analysis?
a.
$159.7
b.
$214.5
c.
$147.2
d.
$202.0
Phản hồi
The correct answer is:
$159.7
Câu Hỏi 23
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Which of the following statements is correct?
a.
Social cost-benefit analysis is used to appraise public projects only.
b.
Social cost-benefit analysis is used to appraise the efficiency of private projects from a public interest
viewpoint as well as to appraise public projects.
c.
Social cost-benefit analysis is used to appraise the efficiency of foreign investment projects from a public
interest viewpoint as well as to appraise public projects.
d.
Social cost-benefit analysis is used to appraise the efficiency of large-scale private projects from a social
viewpoint.
Phản hồi
The correct answer is:
Social cost-benefit analysis is used to appraise the efficiency of private projects from a public interest
viewpoint as well as to appraise public projects.
Câu Hỏi 24
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A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track,
for which it is paid $180 by the government. The firm incurs no other cost, apart from the wage
bill, in constructing the track. The government is to charge a fee to users of the track, and the
present value of the fees paid is estimated to be $100. Consumers place a net present value
(net of the fees and any other costs incurred) of $50 on the track’s services. The labour
employed to construct the track would otherwise be unemployed, and the value of its nonmarket activity is estimated to be $50. What is the net benefit of the project to the government?
a.
$30
b.
$100
c.
-$80
d.
$50
Phản hồi
The correct answer is:
-$80
Câu Hỏi 25
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Đoạn văn câu hỏi
This figure illustrates the output of a large-scale project in a competitive market. What is the
market price of this output?
a.
Po
b.
P1
c.
(Po + P1)/2
Phản hồi
The correct answer is:
P1
Câu Hỏi 26
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Is this statement TRUE or FALSE? "Shadow price of a project's imported goods is measured by
the FOB price".
Select one:
True
False
Phản hồi
The correct answer is 'False'.
Câu Hỏi 27
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Is this statement TRUE or FALSE? "Differences between the efficiency net cash flows and the
market net cash flows are the referent group net cash flows of a project".
Select one:
True
False
Phản hồi
The correct answer is 'False'.
Câu Hỏi 28
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Suppose that the market wage is $100 per day and the value placed on the leisure time of
unemployed labour is $60 per day. A project is expected to take 50 worker-days to complete. It
is expected that 40% of the workers hired will be diverted from employment elsewhere in the
economy, and that 60% would otherwise be unemployed. What dollar measure of the cost of
labour used in the project should be included in the Market Analysis?
a.
$3,000
b.
$5,000
c.
$60
d.
$100
Phản hồi
The correct answer is:
$5,000
Câu Hỏi 29
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A foreign firm is considering a project which has present values of benefits and costs, at market
prices, of $100 and $60 respectively. If the project goes ahead, tax of $20 will be paid to the
host country, and pollution costing the host country $10 will occur. Assuming that the owners of
the foreign firm are not part of the referent group, what are the net present values generated by
the project (or market) analysis?
a.
$20
b.
$40
c.
$30
d.
$10
Phản hồi
The correct answer is:
$40
Câu Hỏi 30
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This figure illustrates an output of a large-scale project which is subject to distorting indirect tax.
What is the economic benefit of an output that satisfies existing demand from alternative source
(delta Qs)?
a.
QoEDQ2
b.
Q1ABQ2
c.
Q1ACQo
d.
Q1ACEDQ2
Phản hồi
The correct answer is:
Q1ACQo
Câu Hỏi 31
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A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track,
for which it is paid $180 by the government. The firm incurs no other cost, apart from the wage
bill, in constructing the track. The government is to charge a fee to users of the track, and the
present value of the fees paid is estimated to be $100. Consumers place a net present value
(net of the fees and any other costs incurred) of $50 on the track’s services. The labour
employed to construct the track would otherwise be unemployed, and the value of its nonmarket activity is estimated to be $50. What is the net benefit of the project to the consumers?
a.
-$80
b.
$50
c.
$30
d.
$100
Phản hồi
The correct answer is:
$50
Câu Hỏi 32
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A domestic firm proposes to import $100 worth of goods for use in a manufacturing project. The
$100 includes the c.i.f. value of the imported goods of $75 plus $25 in tariffs. Other costs are
$200 for skilled labour, and the resulting output will sell on the domestic market for $400. What
is the efficiency net benefit?
a.
($400 - $100 - $200) + $25 = $125
b.
($400 - $75 - $200) - $25 + $25 = $125
c.
($400 - $75 - $200) + $25 = $100
d.
($400 - $100 - $25 - $200) = $125
Phản hồi
The correct answer is:
($400 - $100 - $200) + $25 = $125
Câu Hỏi 33
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A foreign firm is considering a project which has, at market prices, a present value of benefits of
$200 and a present value of input costs of $130. If the project goes ahead, tax with a present
value of $50 will be paid to the host country, domestic labour which would otherwise be
unemployed will be paid wages with a present value of $50 for working on the project, and
pollution caused by the project will reduce the value of output elsewhere in the host country’s
economy by $10. Assuming that the owners of the foreign firm are not part of the referent group,
and that the opportunity cost of unemployed labour is 50% of the market wage. What are the net
present values generated by the referent group analysis?
a.
$50 + ($50 - $25) - $10 = $65
b.
$50 + ($50 - $25) + $10 = $85
c.
$50 + $50 - $10 = $90
d.
$50 + ($50 - $25) = $75
Phản hồi
The correct answer is:
$50 + ($50 - $25) - $10 = $65
Câu Hỏi 34
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Đoạn văn câu hỏi
Which price was properly used to estimate this cash flow?
a.
All of them
b.
Shadow price
c.
Efficiency price
d.
Market price
Phản hồi
The correct answers are:
Efficiency price,
Shadow price
Câu Hỏi 35
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Đoạn văn câu hỏi
A foreign firm is considering a project which has, at market prices, a present value of benefits of
$200 and a present value of input costs of $130. If the project goes ahead, tax with a present
value of $50 will be paid to the host country, domestic labour which would otherwise be
unemployed will be paid wages with a present value of $50 for working on the project, and
pollution caused by the project will reduce the value of output elsewhere in the host country’s
economy by $10. Assuming that the owners of the foreign firm are not part of the referent group,
and that the opportunity cost of unemployed labour is 50% of the market wage. What are the net
present values generated by the efficiency analysis?
a.
($200 - $130) + $50 + ($50 - $25) - $10 = $135
b.
($200 - $105 - $50) + $50 + ($50 - $25) - $10 = $110
c.
($200 - $130 - $50) + $50 + $50 - $10 = $110
d.
($200 - $130 - $50) + $50 + ($50 - $25) - $10 = $85
Phản hồi
The correct answer is:
($200 - $130 - $50) + $50 + ($50 - $25) - $10 = $85
Câu Hỏi 36
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Is this statement TRUE or FALSE? "Environmental externalities are real, and genuinely impinge
costs on the well-being of people within a country. Hence these economic costs should be
included as part of the economic costs of a project".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 37
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Which of the following statements is correct?
a.
The with-and-without approach is at the heart of the cost-benefit analysis and also underlies the important
concept of economic value.
b.
The with-and-without approach is at the heart of the cost-benefit analysis and also underlies the important
concept of opportunity cost.
c.
The before-and-after approach is at the heart of the cost-benefit analysis and also underlies the important
concept of opportunity cost.
d.
The before-and-after approach is at the heart of the cost-benefit analysis and also underlies the important
concept of economic value.
Phản hồi
The correct answer is:
The with-and-without approach is at the heart of the cost-benefit analysis and also underlies the important
concept of opportunity cost.
Câu Hỏi 38
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Suppose that the economy consists of three individuals, A, B, and C, and that there are three
projects being considered. The net benefits, measured in dollars, received by the three
individuals from each of the three projects are reported in the following Table:
Individual
Project
1
2
3
A
-10
+20
+5
B
+5
+1
-5
C
+10
+1
-1
Which of the projects, if any, can be described as a Pareto improvement?
a.
Project 1
b.
None of them
c.
Project 3
d.
Project 2
Phản hồi
The correct answer is:
Project 2
Câu Hỏi 39
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Đoạn văn câu hỏi
Is this statement TRUE or FALSE? "Shadow prices are not prices that are actually paid to, or
received by any economic agent; they are purely to account for effects that are not measured by
market prices".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 40
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Draw an upward sloping supply curve and a downward sloping demand curve for labour. Label
the axes. Assuming that the labour market is distorted by a minimum wage, draw in the level of
the minimum wage, labelled wm, and identify the quantity of labour demanded, labelled Q. On
the supply curve of labour, identify the level of the wage corresponding to Q units of labour
supplied, and label it wa. Suppose that a project will use a small amount of labour drawn from
the above market. When the labour is diverted from alternative employment and cannot be
replaced in that employment from the ranks of the unemployed, what should the labour be
costed in efficiency analysis?
a.
wa per unit
b.
(wm + wa)/2 per unit
c.
wm per unit
Phản hồi
The correct answer is:
wm per unit
Câu Hỏi 41
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Đoạn văn câu hỏi
Is this statement TRUE or FALSE? "Import duty and custom charges are transfer payments,
and thus should be excluded from the efficiency analysis".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 42
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Đoạn văn câu hỏi
This is the NPV@10% results of the NFG project. What is the NPV of private analysis?
a.
$92.6
b.
$7.8
c.
$100.4
d.
-$236.3
Phản hồi
The correct answer is:
$7.8
Câu Hỏi 43
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Đoạn văn câu hỏi
Which is the measure of willingness to accept compensation (WTA)?
a.
b
b.
None of the two
c.
Both a and b
d.
a
Phản hồi
The correct answer is:
b
Câu Hỏi 44
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Đoạn văn câu hỏi
Is this statement TRUE or FALSE? "Shadow wage of skilled labour is often equal to its market
wage".
Select one:
True
False
Phản hồi
The correct answer is 'True'.
Câu Hỏi 45
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Đoạn văn câu hỏi
State whether you would use the demand curve or the supply curve to determine the shadow
price for valuation purposes in an efficiency analysis if the project output, which is subject to a
distorting indirect tax, satisfies existing demand from alternative source?
a.
Supply curve
b.
Demand curve
Phản hồi
The correct answer is:
Supply curve
Câu Hỏi 46
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Đoạn văn câu hỏi
A domestic firm proposes to import $100 worth of goods for use in a manufacturing project. The
$100 includes the c.i.f. value of the imported goods of $75 plus $25 in tariffs. Other costs are
$200 for skilled labour, and the resulting output will sell on the domestic market for $400. What
is the market net benefit?
a.
$400 - $200 =$200
b.
($400 - $100 - $200) + $25 =$125
c.
$400 - $75 - $200 =$125
d.
$400 - $100 - $200 =$100
Phản hồi
The correct answer is:
$400 - $100 - $200 =$100
Câu Hỏi 47
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Đoạn văn câu hỏi
Within above framework, which area contains the net benefits to the international equity
holders?
a.
D
b.
A
c.
C
d.
B
Phản hồi
The correct answer is:
B
Câu Hỏi 48
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Đoạn văn câu hỏi
This is the NPV@10% results of the ICP project. What is the NPV of efficiency analysis?
a.
$159.7
b.
$202.0
c.
$54.8
d.
$214.5
Phản hồi
The correct answer is:
$214.5
Câu Hỏi 49
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Đoạn văn câu hỏi
The local government hires a computer programmer from a Ho Chi Minh city for a year at a cost
of $30,000, which is $10,000 more than she could earn during that period in Ho Chi Minh city.
The local government also pays $1000 for accommodation in a rent controlled apartment with a
market value of $1200. The programmer edits some programs and saves the local government
$40,000. Assuming the programmer is not a member of the referent group. What is the net
benefit of the project according to an efficiency analysis?
a.
($40,000 - $30,000 - $1,200) + ($30,000 - $20,000) = $18,800
b.
($40,000 - $30,000 - $1,000) + ($30,000 - $20,000) = $19,000
c.
($40,000 - $20,000 - $1,200) + ($30,000 - $20,000) = $28,800
d.
($40,000 - $30,000 - $1,000) + ($30,000 - $10,000) = $29,000
Phản hồi
The correct answer is:
($40,000 - $30,000 - $1,200) + ($30,000 - $20,000) = $18,800
Câu Hỏi 50
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Đoạn văn câu hỏi
A foreign firm is considering a project which has present values of benefits and costs, at market
prices, of $100 and $60 respectively. If the project goes ahead, tax of $20 will be paid to the
host country, and pollution costing the host country $10 will occur. Assuming that the owners of
the foreign firm are not part of the referent group, what are the net present values generated by
the efficiency analysis?
a.
$30
b.
$20
c.
$40
d.
$10
Phản hồi
The correct answer is:
$30
Câu Hỏi 51
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Đoạn văn câu hỏi
What does the efficiency analysis rule tell us about valuing labour input in a benefit-cost
analysis?
a.
Value the labour input at opportunity cost
b.
Value the labour input at market wage
c.
Value the labour input at minimum wage
d.
Value the labour input at unemployment benefit foregone
Phản hồi
The correct answer is:
Value the labour input at opportunity cost
Câu Hỏi 52
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Đoạn văn câu hỏi
This figure illustrates an input of a project which is subject to a distorting indirect tax. What is the
economic cost of this input (Q1Q2)?
a.
Q1AEQ2
b.
QDCQ2
c.
Q1ABQ
d.
Q1ABDCQ2
Phản hồi
The correct answer is:
Q1ABDCQ2
Câu Hỏi 53
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Đoạn văn câu hỏi
State whether the appropriate price is gross or net of the tax price to determine the shadow
price for valuation purposes in an efficiency analysis if the project output, which is subject to a
distorting indirect tax, satisfies additional demand?
a.
Net of tax
b.
Gross of tax
Phản hồi
The correct answer is:
Gross of tax
Câu Hỏi 54
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Đoạn văn câu hỏi
This figure illustrates an input of a large-scale project which is subject to distorting subsidy.
What is the economic cost of a replaced quantity demanded (delta Qd)?
a.
BCDE
b.
QCDQ2
c.
Q1ABCDQ2
d.
Q1ABQ
Phản hồi
The correct answer is:
Q1ABQ
Câu Hỏi 55
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Đoạn văn câu hỏi
This figure illustrates an input of a large-scale project which is subject to distorting subsidy.
What is the economic cost of the project's input (Q1Q2)?
a.
Q1ABCDQ2
b.
QCDQ2
c.
Q1QEQ2
d.
Q1ABQ
Phản hồi
The correct answer is:
Q1ABCDQ2
Câu Hỏi 56
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Đoạn văn câu hỏi
State whether you would use the demand curve or the supply curve to determine the shadow
price for valuation purposes in an efficiency analysis if the project input, which is subject to a
distorting subsidy, is diverted from alternative use?
a.
Supply curve
b.
Demand curve
Phản hồi
The correct answer is:
Demand curve
Câu Hỏi 57
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Đoạn văn câu hỏi
State whether you would use the demand curve or the supply curve to determine the shadow
price for valuation purposes in an efficiency analysis if the project output, which is subject to a
distorting indirect tax, satisfies additional demand?
a.
Supply curve
b.
Demand curve
Phản hồi
The correct answer is:
Demand curve
Câu Hỏi 58
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Xóa cờ
Đoạn văn câu hỏi
Within above framework, which area contains the net benefits to the foreign suppliers?
a.
D
b.
A
c.
C
d.
B
Phản hồi
The correct answer is:
D
Câu Hỏi 59
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Đoạn văn câu hỏi
State whether you would use the demand curve or the supply curve to determine the shadow
price for valuation purposes in an efficiency analysis if the project input, which is subject to a
distorting indirect tax, is diverted from alternative use?
a.
Supply curve
b.
Demand curve
Phản hồi
The correct answer is:
Demand curve
Câu Hỏi 60
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Đoạn văn câu hỏi
A recent high school graduate has been offered a job at the local supermarket paying $15,000
per year. She believes that if she were to graduate from college her annual earnings would be
$6,000 more than what she could make from the supermarket job. A three-year degree course
would cost her $3,000 per year in fees, textbooks and other expenses. Assuming a zero rate of
discount rate. What is the present value of her cash outflow?
a.
$24,000
b.
$15,000
c.
$9,000
d.
$18,000
The correct answer is:
$24,000
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