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Economic Formulation Exercise: Roles in Plan Formulation Analysis

Learn basic roles in plan formulation from an economic perspective. Understand economic principles like net economic benefits and benefit-to-cost ratio. Analyze various scenarios and make informed decisions.

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Economic Formulation Exercise: Roles in Plan Formulation Analysis

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  1. Formulation from an Economic Perspective An Exercise:

  2. Economic Formulation Exercise • Objective: The student will become familiar with some basic roles in plan formulation, including economic principles such as: • Net economic benefits • Benefit-to-cost ratio • Incremental justification • NED & NER benefits

  3. Questions: • Which is the best plan to the economist? • Which might be best to the local sponsor? • Which would be the best plan for resource agencies? • Is going from 0.02 protection to 0.01 protection incrementally justified? How about 0.01 to 0.005? • Which would you select?

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