Q1. The following are examples of benefits except: a. Additional revenue to loca

Question

Q1. The following are examples of benefits except:

a. Additional revenue to local motels because of extended national park road.

b. School overcrowding because of a military base expansion.

c. Less tire wear because of a military base expansion.

d. $400,000 annual income to local businesses because tourism created by new national park.

Q2. To convert inflated dollars into constant-value dollars, it is necessary to take inflated

dollars and:

a. Divide by (1 + if)n

b.Divide by (1 + f )n

c. Divide by (1 + i)n

d. Multiply by (1 + f)n

Please explain me why you chose the answer.

Explanation / Answer

Q1. The following are examples of benefits except:

a. Additional revenue to local motels because of extended national park road: No (as revenues of motels increase as revenues are beneficial for motel owners)

b. School overcrowding because of a military base expansion: Yes (as school overcrowding will affect school children and their education negatively)

c. Less tire wear because of a military base expansion: No (as it is beneficial as less tyres get worn out)

d. $400,000 annual income to local businesses because tourism created by new national park: No (as incomes of businesses get increased which is a benefit)

Q2. To convert inflated dollars into constant-value dollars, it is necessary to take inflated

dollars and: c. Divide by (1 + i)n (This will reduce the inflated value, as it will get discounted for current value)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.