Question

1- 26. The county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool. This is an example of: a. contingent valuation. b. revealed preference valuation. c. cost-benefit analysis. d. social discounting.

Answer 1

Answer:

The answer is option A) Sending out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool  is an example of contingent valuation.

Explanation:

Contingent Valuation is a survey based economic valuation technique. This is a method of estimating the value that a group of people places on a good.

The Contingent Valuation approach asks people to report their willingness to pay to obtain a product, or willingness to accept to give up a product.

Just like the case demonstrated above whereby the county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool.  

However, the approach is different in Revealed Preference valuation. Here inference is made from observed behaviors in regular market places.

Answer 2

Answer:

a. contingent valuation.

Explanation:

Contingent valuation is a method of estimating a value that a person places on product or service. In this method people are being asked for the their willingness to pay for a particular product or service and their willingness to accept or reject the product / service.

In this question the Country Supervisor is asking the resident whether they are each willing to pay toward a new community swimming pool.