ARE 220 - 3

¡Supera tus tareas y exámenes ahora con Quizwiz!

Which one of the following valuation techniques is not based on the value of marketed goods or services?

Contingent valuation

Explicit costs do not include which of the following

opportunity costs

Implicit costs include which of the following

opportunity costs

The present value of $525 received one year from today, assuming an annual rate of return (discount rate) of 5% is

$500

1 out of 1 points If the value of an environmental benefit realized two years from today is $970.20, and the annual rate of return is 5 percent, then its present discounted value is

$880

The primary method of obtaining data for the Contingent Valuation Method is

A survey of a sample of the population

graph shows the demand for a lake with a preexisting environmental quality level (represented by D0) and the price for admission. If there is no policy change to improve the environmental quality of the lake, consumer surplus may be represented by

Area abP

Which one of the following techniques is an example of supply-side economic valuation?

Avoided cost valuation

The Benefit Cost Ratio is estimated as

BCR = Benefits/costs

The value you may derive from knowing a resource is there for future generations is

Bequest value

Which one of the following statements is true?

Discounting will decrease the magnitude of future cost and benefits

An economist estimates the value of a nature preserve by calculating the price premium people pay for houses located adjacent to the preserve. This is an example of what type of economic valuation?

Hedonic Pricing

One method of determining weather or not to invest in a project is the Net Present Value. A project should not be invested in if the

NPV < 0

One method for determining whether or not to invest in a project is the Net Present Value. A project should be invested in if the

NPV > 0

The social welfare criterion used for Benefit Cost Analysis requires that

Net benefits = Total Benefits - Total Costs

The benefit cost radio can be use to determine which projects to fund. A project should be funded if

PVB/PVC > 1

Indirect use of nature could include

Using wetlands as a natural filter for urban drinking water

Among the chief concerns about the use of benefit-cost analysis is that

all of the above

Averting costs as a method for estimating non - market values could include the

all of the above

Direct use values of nature could include

all of the above

It is desirable to value the environment so we have an idea about the

all of the above

Non - use economic values of the environment were identified as

all of the above

Some of the "hidden" costs of implementing an environmental policy include

all of the above

graph shows the demand for a lake with a preexisting environmental quality level (represented by D0) and the price for admission. If there is a policy implemented to improve the environmental quality of the lake, the change in consumer surplus with and without the new policy may be represented by

area abdb

graph shows the demand for a lake with a preexisting environmental quality level (represented by D0) and the price for admission. If there is a policy implemented to improve the environmental quality of the lake, the new consumer surplus may be represented by

area cPd

Travel Cost Methods (TCM) and Hedonic Pricing Methods are

based on revealed preferences

Contingent Valuation Methods (CVM) are

based on stated preferences

If PVB/PVC for a given policy option equals 5.5, this means that

both (b) and (c) are correct

which of the following are reasons economists discount the benefits and costs or projects

both of the above

Which of the following are reasons economists discount the benefits and costs of projects

both of the above / all of the above

graph shows the demand for a lake with a preexisting environmental quality level (represented by D0) and the price for admission. According to the graph, the policy to improve environmental quality

increases demand for visits from e to f.

In the final phase of benefit-cost analysis, one of the steps that is generally conducted is to

determine if an option is feasible

When measuring the incremental benefits of a policy change, economists estimate

either a or b both provide the same result

Developing the marginal social benefit (MSB) or total social benefit (TSB) curves allows economists to

estimate the potential value of an environmental policy

The present value of net benefits (PVNB) is

found as (PVB - PVC)

The classic context for hedonic environmental pricing studies (the source of most analyses) is

housing markets

A "Potential Pareto Improvement" occurs when

society is better off if and only if the gainers could compensate the losers with a little left over.

Which of the following is not identified as a problem with the Travel Cost Method

studies provide nonuse - values only

A technique to estimate the value of a cleaner environment based on averting costs would not include

the cost to install gutters on your home

An example of environmental services that may have a value not considered in the market is

the pollution of fruit orchards by honeybees

If the discount rate is zero

the present and future should be treated equally

A larger discount rate is indicated that

the present is more important than the future.

Which of the following are reasons economists discount the benefits and costs of projects

uncertainty about the future

A discount rate that is less than zero indicates that

we should suffer now because the future is more important the present.

A smaller discount rate is an indication that

what happens in the future is important


Conjuntos de estudio relacionados

ATI wellness, Health promotion, and disease prevention test

View Set

AIS Chapters 5,6 and 7 (12,13 and 14)

View Set