@PROFDOCDIGITALLIBRARIES
NR 326/ NR326 FINAL EXAM : (NEW 2025/ 2026
UPDATE) MENTAL HEALTH NURSING REVIEW |
QUESTIONS & ANSWERS| GRADE A+| 100% CORRECT
(VERIFIED SOLUTIONS)- CHAMBERLAIN
1. Market approach to valuation - ANS ✓the value of a good or service is
commensurate with the expressed value (market price) of similar goods or services
(revealed value). Uncertainty makes income approach too inaccurate
PR
2. Cost approach to valuation - ANS ✓value of a good or service is what it costs to
replace it
O
3. Time preference - ANS ✓the balancing act between satisfying current needs and
FD
wants (consumption) and preparing for future consumption (saving and investing);
expressed through interest rates
A dollar is worth more today than a dollar tomorrow -> therefore, you can never simply add
O
values over time
C
4. What does the APR calculation depend on? - ANS ✓- number or payments per
year
- total number of payments
- total interest paid over life of loan
- size of loan
5. Pigouvian Tax - ANS ✓tax levies to abate pollution using the market, appreciate for
diffuse pollution (ex.: CA gas tax)
1.Establish tax that adds to the firms marginal costs of production that creates pollution
(marginal cost = MPC + T)
, @PROFDOCDIGITALLIBRARIES
2.Faced with higher marginal costs (MPC + T), firms have an incentive to reduce output
thereby reducing pollution more efficient than with a command and control means
3.Total tax revenue to state shaded area; revenue can be sued by state to mitigate remaining
pollution (double social gain)
4.Problem: lack of information on how to set tax to efficient level
6. Marginal private cost - ANS ✓costs without externalities (E = MSC - MPC)
7. Marginal social cost - ANS ✓costs with externalities
8. Cosian market solution - ANS ✓theory on assigning property rights for externalities.
PR
Given complete property rights, trade among involved parties will eliminate pareto-
relevant externalities -> giving property rights to pollution (Ronald Coase, Nobel
Prize)
O
9. Pollution markets are an issue of __________ - ANS ✓transaction costs, costs
involved in buyer and seller negotiating on exchange of a good
FD
10. If the transaction costs are low and there are few affected parties... - ANS ✓it
doesn't matter on efficiency grounds whether the polluter is assigned liabilities for
O
polluting (full liability) or the affected parties (zero liability).
C
11. Generally, transaction costs are high, making it more efficient to assign liabilities
to __________ - ANS ✓the polluter, and therefore "ownership" of the pollutant
12. Full liability - ANS ✓polluter is assigned liabilities for polluting
13. Zero liability - ANS ✓affected parties are assigned liability for pollution
14. What did the coasian market solution play a significant role in? - ANS
✓privatization movements, government partnered with companies to reduce
emissions in the 1990 amendment to the Clean Air Act
NR 326/ NR326 FINAL EXAM : (NEW 2025/ 2026
UPDATE) MENTAL HEALTH NURSING REVIEW |
QUESTIONS & ANSWERS| GRADE A+| 100% CORRECT
(VERIFIED SOLUTIONS)- CHAMBERLAIN
1. Market approach to valuation - ANS ✓the value of a good or service is
commensurate with the expressed value (market price) of similar goods or services
(revealed value). Uncertainty makes income approach too inaccurate
PR
2. Cost approach to valuation - ANS ✓value of a good or service is what it costs to
replace it
O
3. Time preference - ANS ✓the balancing act between satisfying current needs and
FD
wants (consumption) and preparing for future consumption (saving and investing);
expressed through interest rates
A dollar is worth more today than a dollar tomorrow -> therefore, you can never simply add
O
values over time
C
4. What does the APR calculation depend on? - ANS ✓- number or payments per
year
- total number of payments
- total interest paid over life of loan
- size of loan
5. Pigouvian Tax - ANS ✓tax levies to abate pollution using the market, appreciate for
diffuse pollution (ex.: CA gas tax)
1.Establish tax that adds to the firms marginal costs of production that creates pollution
(marginal cost = MPC + T)
, @PROFDOCDIGITALLIBRARIES
2.Faced with higher marginal costs (MPC + T), firms have an incentive to reduce output
thereby reducing pollution more efficient than with a command and control means
3.Total tax revenue to state shaded area; revenue can be sued by state to mitigate remaining
pollution (double social gain)
4.Problem: lack of information on how to set tax to efficient level
6. Marginal private cost - ANS ✓costs without externalities (E = MSC - MPC)
7. Marginal social cost - ANS ✓costs with externalities
8. Cosian market solution - ANS ✓theory on assigning property rights for externalities.
PR
Given complete property rights, trade among involved parties will eliminate pareto-
relevant externalities -> giving property rights to pollution (Ronald Coase, Nobel
Prize)
O
9. Pollution markets are an issue of __________ - ANS ✓transaction costs, costs
involved in buyer and seller negotiating on exchange of a good
FD
10. If the transaction costs are low and there are few affected parties... - ANS ✓it
doesn't matter on efficiency grounds whether the polluter is assigned liabilities for
O
polluting (full liability) or the affected parties (zero liability).
C
11. Generally, transaction costs are high, making it more efficient to assign liabilities
to __________ - ANS ✓the polluter, and therefore "ownership" of the pollutant
12. Full liability - ANS ✓polluter is assigned liabilities for polluting
13. Zero liability - ANS ✓affected parties are assigned liability for pollution
14. What did the coasian market solution play a significant role in? - ANS
✓privatization movements, government partnered with companies to reduce
emissions in the 1990 amendment to the Clean Air Act
