1. If the expected return is 20% and the standard deviation is 5, what is the best case return consistent with 95% confidence.
A. 40%
B. 25%
C. 50%
D. 30%
2. The social rate of discount used in cost-benefit analysis measures the:
a. benefits of a project. b. cost of a project. c. rate of return on the project. d. opportunity cost of displaced private saving or investment.
3. Cost-benefit analysis is a way to:
a. minimize the cost of producing a given amount of government services. b. rank projects according to their marginal net benefits. c. maximize the output of government. d. increase government spending.
4. The process of taking a previous period’s budget and making minor changes to produce the current year’s budget is called:
a. zero based budgeting. b. enumerated budgeting. c. developmental budgeting. d. incremental budgeting.