Which of the Following Statements Regarding the Valuing of Costs

question 59

Multiple Choice

Which of the following statements regarding the valuing of costs and benefits is NOT correct?

• A)The first step in evaluating a project is to identify its costs and benefits.
• B)In the absence of competitive markets,we can use one-sided prices to determine exact cash values.
• C)Competitive market prices allow us to calculate the value of a decision without worrying about the tastes or opinions of the decision maker.
• D)Because competitive markets exist for most commodities and financial assets,we can use them to determine cash values and evaluate decisions in most situations.

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Definitions:

Linear Perspective

A depth cue that refers to the tendency for parallel lines to appear to converge as they recede into the distance.

Briefly Flashed

A term describing something shown or displayed for a very short period of time.

Monocular Depth Cue

A monocular depth cue is a visual information piece that allows a person to judge depth using the input from just one eye.

Interposition

A visual cue in which one object partially obstructs another, allowing the observer to perceive depth and relative distance.