Asking someone to quantify how much he or she would benefit from a new highway is an example of:
A) contingent valuation.
B) revealed preference valuation.
C) cost-benefit analysis.
D) social discounting.

Question

Quizplus · Accepted Answer

Asking someone to quantify how much they would benefit from a new highway is an example of contingent valuation. This method involves asking people directly how much they would be willing to pay for a particular good or service, or how much compensation they would require to give it up. It is a commonly used approach in economic valuation studies. Revealed preference valuation focuses on observing actual behavior to determine how much people value a good or service. Cost-benefit analysis involves comparing the costs and benefits of a project to determine whether it is worth pursuing. Social discounting involves adjusting the value of future benefits and costs based on the social or economic context in which they occur.

Asking Someone to Quantify How Much He or She Would