Answer to Question #208456 in Microeconomics for lokesh

Question

The county manager decides that a new community park should be constructed based on the projected construction and operating expenses as well as estimates of how much residents would be willing to pay for the park. This approach reflects:

a.contingent valuation.

b.wage valuation

c.cost-benefit analysis.

d.revealed preference valuation.

Answer 1

Answer

a. Contingent Valuation

The above approach reflects contingent Valuation because this is a method of valuation where it estimates the value people put on a good,or how much they are willing to pay for a commodity in the market or getting social amenities such as recreational centres and private non-market commodities such as reductions in the risk of death and travel costs.