Kinh tế công cộng - Nhóm 8

What does a positive Net Present Value (NPV) indicate in a public investment project?

• A. The project will lose money
  

• B. The project is marginally acceptable
  

• C. The project adds net value and should be accepted

• D. The project has zero benefit

Internal Rate of Return (IRR) is defined as the discount rate at which:

• A. The future value of cash flows is maximized

• B. The project risk is eliminated

• C. NPV equals zero

• D. Capital costs are minimized
  

A project should be accepted if its IRR is:

• Lower than the social discount rate

• B. Higher than the cost of capital

• C. Equal to zero

• D. Lower than inflation rate

Which of the following is a major strength of NPV as a decision-making tool?

• A. It ignores the time value of money
  

• B. It reflects the total net benefit in today’s value

• C. It always produces higher returns than IRR

• D. It does not require estimating future cash flows

What is one key limitation of IRR in public project analysis?

• A. It requires no initial investment

• B. It does not apply to government projects

• C. It can give misleading results with non-conventional cash flows

• D. It always underestimates social benefits

Which of the following is not typically a goal of evaluating public expenditures?

• A. Maximizing administrative control

• B. Promoting efficiency
  

• C. Ensuring equity

• D. Assessing effectiveness

A project has benefits that are hard to quantify (e.g., improved civic trust). What tool is likely more appropriate?

• A. NPV

• B. IRR

• C. Qualitative assessment

• D. Payback period

In evaluating public education spending, an analyst considers both test score improvements and equity in rural areas. This implies:

• A. A focus only on economic growth

• B. Ignoring efficiency

• C. Combining efficiency and equity criteria

• D. A political analysis approach

Which evaluation tool is most appropriate when comparing two public projects with similar costs but different outcomes?

• A. Fiscal impact analysis

• B. Cost-benefit ratio

• C. Break-even analysis

• D. Time series regression

10. When public spending crowds out private investment with no net gain in welfare, the project is considered:

• A. Progressive

• B. Efficient

• C. Redundant or wasteful

• D. Redistributive