6. Policy and Assessment

Policy Evaluation — Quiz

Test your understanding of policy evaluation with 5 practice questions.

Practice Questions

Question 1

A public infrastructure project costs \100 initially and is expected to generate benefits of \$40 at the end of each of the next three years. If the discount rate is 5\\%, what is the net present value (NPV) of the project? Provide a step-by-step calculation.

Question 2

Which assumption is necessary for a difference-in-differences design to yield unbiased estimates of a policy effect?

Question 3

In a randomized controlled trial evaluating a job training program, some participants assigned to the program do not attend. An intention-to-treat (ITT) analysis compares outcomes based on:

Question 4

Propensity score matching in policy evaluation primarily aims to reduce bias due to:

Question 5

Which two conditions must an instrumental variable $Z$ satisfy to provide a valid estimate of the causal effect of $X$ on $Y$?