The Social Discount Rate Is an Important Component in Net

question 58

Multiple Choice

The social discount rate is an important component in net present value (NPV) calculations for public policies related to stock externalities, but economists do not agree on which value to use for this rate. Suppose a recent study reports that the NPV of a proposed carbon tax intended to reduce carbon dioxide emissions is positive, but the annual net benefits do not become positive until 2060. The authors of the study used a social discount rate of 2%. What can we say about the findings of the study if the research were repeated with a higher social discount rate?

• A) NPV would decline, and the annual net benefits would become positive after 2060.
• B) NPV would increase, and the annual net benefits would become positive before 2060.
• C) NPV would decline, and the annual net benefits would not change.
• D) The findings of the study would not change.

Comprehend the officer subculture within prisons and how it influences treatment of inmates and use of discretion.

Identify and evaluate the policies regarding housing and treatment of transgender inmates in different jurisdictions.

Understand the role and consequences of whistle-blowing within the correctional system.

Grasp the ethical dilemmas and discretionary power encountered by correctional officers and their potential consequences.

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Definitions:

Miles to the Gallon

A measure of a vehicle's fuel efficiency, indicating how many miles the vehicle can travel on one gallon of fuel.

Correct Figure

Accurate numerical representation or data that correctly reflects a specified measurement, value, or calculation.

Valid Contract

An agreement between two or more parties that is enforceable by law, containing all necessary elements like offer, acceptance, consideration, and legality of purpose.

Voluntary

Pertains to actions or decisions made by an individual or entity based on their own will without external coercion.