Suppose you cannot buy information that completely removes the uncertainty from a business decision that you face, but you could buy information that reduces the degree of uncertainty
Based on the discussion in this chapter, the value of this partial information could be determined as the: A) expected outcome under complete certainty minus the expected outcome under the partial information case.
B) expected outcome under the partially uncertain case minus the expected outcome under the completely uncertain case.
C) utility of the partially certain case minus the utility of the completely certain case.
D) We cannot determine the value of information under partial certainty.
B
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In cost-effectiveness analysis, constant cost studies:
a. are rarely used b. attempt to specify the output which may be achieved from a number of alternative programs, assuming all are funded at the same level c. are useless because they fail to adequately evaluate program benefits d. try to find the least expensive way of achieving a certain objective e. none of the above
Which of the following statements is false?
A) To an economist, the resource land includes natural resources such as minerals, forests, water and unimproved land. B) To an economist, the resource capital consists of unproduced goods that can be turned into produced goods. C) To an economist, the resource labor consists of the physical and mental talents people contribute to the production process. D) To an economist, the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things.