Evaluate the statement: According to Kaldor Hicks Criterion, we should only accept a project when at least one individual is better off without making any other individual worse off

If the costs of a project are borne disproportionately by a single group of people, the project hasn’t met the criteria of:Question 5Select one:a.fairnessb.efficiencyc.cost effectivenessd.incentives to innovate

Which of the following can be a criterion for the acceptance of a project?

[25 marks] (Aghion and Tirole’s model of delegation) CEO Alice needs to choose among four projects. She hiresBob to recommend a project to her. The four projects are of three types, A, B, and D. One project is of type A,one project is of type B and two projects are of type D. Both Alice’s and Bob’s payoffs depend on the types of theproject implemented, as summarized in the following table. The payoffs are “utility indices” whose expectation iswhat players try to maximize.Throughout the question, we assume that Alice cannot observe the types of the four projects: the four projects lookidentical to her. The timing is as follows.(1) Bob recommends a project based on his knowledge.Project type Alice’s payoff Bob’s payoffA 10 6B 6 10D -100 -1001(2) Alice chooses among three options: implementing the project recommended by Bob, implementing a randomlychosen project not recommended by Bob, and doing nothing. Doing nothing gives both players zero payoff.(a) [5 marks] First, assume that Bob knows nothing more than Alice. Therefore, he randomly recommends aproject, which is of types A with probability 1/4, B with probability 1/4, and D with probability 1/2. Determinewhat Alice should do in this case.(b) [15 marks] Now assume that Bob knows the types of the four projects. We model the interaction betweenAlice and Bob as a strategic form game. Bob chooses which project to recommend (A, B or D) and Alicechooses among C (accepting the recommendation), R (rejecting the recommendation and choosing randomlybetween the remaining three projects) and N (doing nothing). Write down the payoff matrix of the game andfind all Nash equilibria (in pure strategy). (Hint: first, figure out the probabilities that Alice’s randomly chosenproject is of type A, B and D if she rejects Bob’s recommendation.)(c) [5 marks] Discuss why hiring Bob (whose salary is negligible compared with project payoffs) may help Aliceeven though their interests are not perfectly aligned. (Limited to 50 words.

A Corporation must decide between two mutually exclusive projects. Both projects requirean initial spending of $100 million, and they generate cash ows that are independent of thegrowth of the economy.Project A has equal probability of four gross payos: $80 million, $100 million, $120 million,or $140 million.Project B has a 50/50 chance of paying either $90 million or $130 million.Assuming that the shareholders are all risk-averse, prove that they unanimously prefer projectB to project A.1

Project managers and their staff must not necessary possess the required expertise for successful project implementation.Question 8Answera.sureb.unsurec.False\'d.True\'