Which of the following is the approach taken to ask individuals how they value an option they are not now choosing?
A) contingent valuation
B) revealed preference
C) cost-benefit analysis
D) social discounting

Question

Quizplus · Accepted Answer

Contingent valuation is the approach taken to ask individuals how they value an option they are not now choosing. This involves asking individuals how much they would be willing to pay for a certain option or how much they would require as compensation for giving up a certain option. Revealed preference involves observing the choices individuals make and inferring their preferences based on those choices. Cost-benefit analysis involves comparing the costs and benefits of different options to determine which option is most favorable. Social discounting involves taking into account the impacts of an option on different individuals or groups in society.

Which of the Following Is the Approach Taken to Ask