The county supervisor is considering building a community pool and has gathered data on how much residents are willing to pay.He sums up all of the valuations he has received and compares that number to the estimated cost.This is an example of:
A) contingent valuation.
B) revealed preference valuation.
C) cost-benefit analysis.
D) social discounting.

Question

Quizplus · Accepted Answer

This is an example of cost-benefit analysis, where the supervisor is comparing the benefits of building a community pool (as revealed by residents' willingness to pay) to the costs of constructing it. Contingent valuation and revealed preference valuation are methods for eliciting values, while social discounting is a concept related to how future benefits and costs are valued in relation to present ones.

The County Supervisor Is Considering Building a Community Pool and Has