Discussion Questions on EAMPPP sections 9.3-9.6

1. What is a potential Pareto improvement, and in what ways is making a potential Pareto improvement a good thing?

2. Study the long quotation from Layard and Glaister on page 146. How plausible is their defense of cost-benefit analysis?

3. Study figure 9.4.1 on page 148. What does it show?

4. What, in your view, is the most serious objection to cost-benefit analysis?

5. What is the best defense of cost-benefit analysis? What does it imply about how cost-benefit analysis should be used?