The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate.

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Quizplus · Accepted Answer

The social discount rate used in cost-benefit analysis is a controversial topic and there is no standardized approach. The Treasury Bill rate and the long-term government borrowing rate are often cited as potential components of the social discount rate, but the weight given to each rate can vary depending on the specific analysis and the assumptions made. Therefore, it is not accurate to say that the social discount rate is equal to a weighted average of these two rates.

The Social Discount Rate Used in Cost-Benefit Analysis Is Equal