Which of the following is the approach taken to determine how individuals value an option by looking at their actions?

Question

Quizplus · Accepted Answer

The approach taken to determine how individuals value an option by looking at their actions is called revealed preference. This approach involves observing what individuals actually choose or purchase in the market, rather than asking them what they would be willing to pay for a particular option (contingent valuation). Cost-benefit analysis involves weighing the costs and benefits of a particular option to make a decision, while social discounting involves adjusting the value of future benefits and costs based on social concerns such as inequality or fairness.

Which of the Following Is the Approach Taken to Determine