Question 1

Which of the following is not likely to diminish efficiency?

Accepted Answer

A)  Lack of adequate expertise and information 
B)  Lack of adequate operation and maintenance budgets 
C)  When government bureaucrats are not adequately held accountable 
D)  When households are required to pay a user fee for the infrastructure service 
A)  Lack of adequate expertise and information 
B)  Lack of adequate operation and maintenance budgets 
C)  When government bureaucrats are not adequately held accountable 
D)  When households are required to pay a user fee for the infrastructure service D

Question 2

Use-rates among the poor may _________,all else equal,as fees ______,service quality _________,physical access to the services by the poor becomes _____________:

Accepted Answer

A)  Rise; rise; falls; easier 
B)  Fall; decrease; falls; easier 
C)  Drop-off; rise; falls; more difficult 
D)  Rise; rise; fall; more difficult 
A)  Rise; rise; falls; easier 
B)  Fall; decrease; falls; easier 
C)  Drop-off; rise; falls; more difficult 
D)  Rise; rise; fall; more difficult C

Question 3

All of the following are reasons why the poor are less likely to use new infrastructure than the non-poor except:

Accepted Answer

A)  Because some poor families will place a higher weight on food staples over using new infrastructure 
B)  When connection and user fees are insignificant 
C)  Because they tend to have smaller farms and fewer complimentary assets 
D)  Poor families tend to live in more remote locations and are likely to lack physical access to some new infrastructure services 
A)  Because some poor families will place a higher weight on food staples over using new infrastructure 
B)  When connection and user fees are insignificant 
C)  Because they tend to have smaller farms and fewer complimentary assets 
D)  Poor families tend to live in more remote locations and are likely to lack physical access to some new infrastructure services B

Question 4

Which of the following is a private cost of current infrastructure service?

Accepted Answer

A)  An increase in food prices 
B)  More time may be required to use the new infrastructure service 
C)  An increase in wage costs 
D)  Maintenance 
A)  An increase in food prices 
B)  More time may be required to use the new infrastructure service 
C)  An increase in wage costs 
D)  Maintenance

Question 5

What is the difference between a connection fee and a use fee?

Accepted Answer

A)  Connection fees are paid by consumers while use fees are paid by firms 
B)  A use fee is a one-time fee will a connection fee is ongoing 
C)  There is no difference between a connection fee and a use fee 
D)  A use fee is ongoing and a connection fee is a one-time fee 
A)  Connection fees are paid by consumers while use fees are paid by firms 
B)  A use fee is a one-time fee will a connection fee is ongoing 
C)  There is no difference between a connection fee and a use fee 
D)  A use fee is ongoing and a connection fee is a one-time fee

Question 6

Which of the following is a benefit associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

Accepted Answer

A)  Reduction of infrastructure sector's net drain on the government budget 
B)  Reduction in positive spillovers 
C)  Increases the use of services by poorer households where the social cost outweighs the social benefit 
D)  May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit. 
A)  Reduction of infrastructure sector's net drain on the government budget 
B)  Reduction in positive spillovers 
C)  Increases the use of services by poorer households where the social cost outweighs the social benefit 
D)  May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit.

Question 7

Why would giving ownership of an infrastructure investment community make sense?

Accepted Answer

A)  It guarantees a source of funding for maintenance 
B)  The local community will have access to more technical information 
C)  It gives the community the incentive to maintain the infrastructure 
D)  It does not make sense to turn over control of maintenance and operations to local communities 
A)  It guarantees a source of funding for maintenance 
B)  The local community will have access to more technical information 
C)  It gives the community the incentive to maintain the infrastructure 
D)  It does not make sense to turn over control of maintenance and operations to local communities

Question 8

Which of the following is a problem associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

Accepted Answer

A)  Reduction of infrastructure sector's net drain on the government budget 
B)  The additional revenue can be used to expand the quantity or quality of the service 
C)  Reduces the use of services by poorer households where the social cost outweighs the social benefit 
D)  May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit. 
A)  Reduction of infrastructure sector's net drain on the government budget 
B)  The additional revenue can be used to expand the quantity or quality of the service 
C)  Reduces the use of services by poorer households where the social cost outweighs the social benefit 
D)  May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit.

Question 9

What is volume targeting?

Accepted Answer

A)  By far the least common approach for getting subsidies to the poor 
B)  May take the form of decreasing block tariffs 
C)  Average fees rise with the volume of services a household uses 
D)  An example would be when households pay a premium for the first quantities used then a lower price as more is consumed 
A)  By far the least common approach for getting subsidies to the poor 
B)  May take the form of decreasing block tariffs 
C)  Average fees rise with the volume of services a household uses 
D)  An example would be when households pay a premium for the first quantities used then a lower price as more is consumed

Question 10

All of the following affects a household's decision to put a particular infrastructure service to use and how much of the service to use except.

Accepted Answer

A)  The price of the service 
B)  The degree of appreciation of the benefits of that service 
C)  The positive externalities that spill over to third parties 
D)  The nature of complimentary policies 
A)  The price of the service 
B)  The degree of appreciation of the benefits of that service 
C)  The positive externalities that spill over to third parties 
D)  The nature of complimentary policies

Question 11

All of the following are examples of positive spill-over effects from an investment in infrastructure except:

Accepted Answer

A)  Lower food prices 
B)  Lower variability in food availability 
C)  Higher wages 
D)  Reduce profits to firms unable to use the new infrastructure program 
A)  Lower food prices 
B)  Lower variability in food availability 
C)  Higher wages 
D)  Reduce profits to firms unable to use the new infrastructure program

Question 12

Infrastructure assets contribute to development not merely by existing,but by generating infrastructure services,such as:

Accepted Answer

A)  Transportation of goods and people 
B)  Provision of clean water and 
C)  the flow of electricity 
D)  All of the above are examples of infrastructure services 
A)  Transportation of goods and people 
B)  Provision of clean water and 
C)  the flow of electricity 
D)  All of the above are examples of infrastructure services

Question 13

Describe how switching from using substitute services to new infrastructure may improve well-being? (Include at least three new infrastructure services)

Accepted Answer

Domestic water infrastructure - When new

Question 14

What is the ultimate objective guiding infrastructure policy?

Accepted Answer

A)  To improve the transportation of goods and people 
B)  To provide improved water services 
C)  To improve well being 
D)  All of the above 
A)  To improve the transportation of goods and people 
B)  To provide improved water services 
C)  To improve well being 
D)  All of the above

Question 15

What is administrative targeting?

Accepted Answer

A)  Involves the use of means tests or categorical restrictions 
B)  Involves offering different levels of quality 
C)  Involves different prices for different quantities 
D)  By far the most common approach for getting subsidies to the poor 
A)  Involves the use of means tests or categorical restrictions 
B)  Involves offering different levels of quality 
C)  Involves different prices for different quantities 
D)  By far the most common approach for getting subsidies to the poor

Question 16

Subsidies are:

Accepted Answer

A)  Equal to expenditures less any revenue gathered by charging fees or requiring contributions 
B)  Equal to the total costs of investment operation and maintenance 
C)  Equal to the total costs of investment operation and maintenance plus fees charged for use 
D)  The cost of advertising the new services offered 
A)  Equal to expenditures less any revenue gathered by charging fees or requiring contributions 
B)  Equal to the total costs of investment operation and maintenance 
C)  Equal to the total costs of investment operation and maintenance plus fees charged for use 
D)  The cost of advertising the new services offered

Question 17

How do policy makers evaluate the investment in a new community level asset?

Accepted Answer

A)  When there is significant demand 
B)  When the average income in the community is below the poverty line 
C)  When the social benefits outweigh the social costs 
D)  When the costs outweigh the benefits for a private firm 
A)  When there is significant demand 
B)  When the average income in the community is below the poverty line 
C)  When the social benefits outweigh the social costs 
D)  When the costs outweigh the benefits for a private firm

Question 18

Project selection decisions include decisions to:

Accepted Answer

A)  Define the more detailed technical specifications 
B)  Determine the general type quality and location of the infrastructure assets to be constructed 
C)  Oversee procurement of labor and materials required for operation 
D)  Determine the fees charged for use of services 
A)  Define the more detailed technical specifications 
B)  Determine the general type quality and location of the infrastructure assets to be constructed 
C)  Oversee procurement of labor and materials required for operation 
D)  Determine the fees charged for use of services

Question 19

User fees may reduce the net benefits that users derive from new infrastructure in two ways ________ and _____________.

Accepted Answer

A)  By reducing purchasing power; by motivating them to cut back on use 
B)  By increasing the quality of the service; by decreasing the length of time the service will be available 
C)  By decreasing the quality of service; by increasing the quantity of services 
D)  By removing positive externalities; by eliminating the free rider problem 
A)  By reducing purchasing power; by motivating them to cut back on use 
B)  By increasing the quality of the service; by decreasing the length of time the service will be available 
C)  By decreasing the quality of service; by increasing the quantity of services 
D)  By removing positive externalities; by eliminating the free rider problem

Question 20

Even when households choose to use new infrastructure services,they may fail to derive all the benefits policymakers might hope for,because they do not put the services to intended uses.Give three examples of users who employ a new infrastructure service but fail to enjoy all of its intended benefits.

Accepted Answer

Households might fail to derive the full

Exam 18: Infrastructure Policies and Programs

Which of the following is not likely to diminish efficiency?

Use-rates among the poor may _________,all else equal,as fees ______,service quality _________,physical access to the services by the poor becomes _____________:

All of the following are reasons why the poor are less likely to use new infrastructure than the non-poor except:

Which of the following is a private cost of current infrastructure service?

What is the difference between a connection fee and a use fee?

Which of the following is a benefit associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

Why would giving ownership of an infrastructure investment community make sense?

Which of the following is a problem associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

What is volume targeting?

All of the following affects a household's decision to put a particular infrastructure service to use and how much of the service to use except.

All of the following are examples of positive spill-over effects from an investment in infrastructure except:

Infrastructure assets contribute to development not merely by existing,but by generating infrastructure services,such as:

Describe how switching from using substitute services to new infrastructure may improve well-being? (Include at least three new infrastructure services)

What is the ultimate objective guiding infrastructure policy?

What is administrative targeting?

Subsidies are:

How do policy makers evaluate the investment in a new community level asset?

Project selection decisions include decisions to:

User fees may reduce the net benefits that users derive from new infrastructure in two ways ________ and _____________.

What Is Development Economics Good for

Well-Being

Economic Growth

Economic Growth Theory in Historical Perspective

Poverty,Inequality and Vulnerability

Consumption, Time Allocation and Production Choices

Houesholds

Domestic Markets for Goods and Services

Labor Markets

Investment and Financial Markets

International Markets and General Equilibrium

Institutions and Cooperation

Policy Governance and Political Economy

Policy Analysis

Targeted Transfer Programs

Workfare

Agricultural Market Interactions and Reforms

Education

Agricultural Research and Extension

Microfinance

Public Health, Health Care and Health Insurance

Filters

Use-rates among the poor may ___,all else equal,as fees ,service quality _,physical access to the services by the poor becomes _________:

User fees may reduce the net benefits that users derive from new infrastructure in two ways and _____.