ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revealed preference techniques
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Potential income techniques
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Averted expenditure techniques
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Stated preference techniques
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Detailed explanation-1: -There are two main types of non-market valuation methods: revealed preference and stated preference.
Detailed explanation-2: -Alternative pricing methods for non-market valuation using involves find alternative pricing mechanisms from already available information. There are four key alternative pricing approaches; indirect markets, opportunity costs, avoided costs, and production.
Detailed explanation-3: -Non-market goods (hereafter NMGs) are goods that people consume but that are not traded in markets (Scitovsky, 1948). Some examples of NMGs include respect, admiration, relationships, and authority.
Detailed explanation-4: -Non-Market valuation is a set of techniques that aims at reflecting the economic value of changes, in the availability or quality, of goods and services that are not intended to be traded in the market (e.g., health care, education, environment).