Question

Existence value is closely related to Question 9 options: a) Valuation use b) Consumptive use c) Estimated use d) Non-consumptive use: a) are used for direct subsistence by people who collect them b) constitute a majority of the global domestic product c) spoiled and must be destroyed before they can be sold d) sold commercially

Answer 1

Answer:

A. Non-consumptive use.

A. Are used for direct subsistence by people who collect them.

Explanation:

Existence value simply refers to the satisfaction a person derives from the knowledge that something exists. He may not have a direct use for the commodity at the time , but just knowing that the material exists, serves as utility to him. This is the non-consumptive use.

Most natural resources like marine life and trees in the forests provide existence value to many. These natural resources can be used in a subsistence level by people who have access to them. For example, in local settings, trees can serve as firewood to people.