The social rate of discount is best approximated by:
A) the cost of government borrowing
B) the opportunity cost of resources taken from the private sector
C) 3 percent
D) 30 percent
E) none of the above

Question

Quizplus · Accepted Answer

The social rate of discount is best approximated by the opportunity cost of resources taken from the private sector, as it reflects the forgone benefits of those resources had they been used elsewhere in the economy.

The Social Rate of Discount Is Best Approximated By