The social rate of discount is the discount rate appropriate for evaluating public sector projects.

Question

Quizplus · Accepted Answer

The social rate of discount is the appropriate discount rate for evaluating public sector projects because it reflects the preferences of society as a whole for consuming goods and services today versus in the future. It takes into account factors such as economic growth, social well-being, and environmental sustainability. This distinguishes it from private discount rates, which are based on individual preferences and market conditions.

The Social Rate of Discount Is the Discount Rate Appropriate