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1)i) Describe two of six measures for policy prescription, (i) effectiveness, (ii) responsiveness, (iii) adequacy, (iv) equity, (v) efficiency, and (vi) appropriateness. describe real or imaginary public policy issue and choose which of the two measures you think would be the most valuable to use in deciding the policy. Give at least two reasons for your selection.

ii) Debate It: Take the position for or against given statement: Rational choice is not possible. describe how various kinds of rationality are related to various measures for prescription. Give at least two reasons and two suitable exs to support your answer.

2) You have the following interest rates: EAR1: 5.2%, EAR2: 5.5%, EAR3: 5.1%, EAR4: 5.6%, EAR5: 5.7%. EARn: Is effective Annual Rate applicable for year n (from commencement of year n till the end of year n). Compute the amount of money today is equal to all these end-of- year future cash flows?

i) $10,392.9
ii) $10,000
iii) $9,480.76
iv) $8,066.56
v) None of the given answers is right

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