ECON 310 Chapter 4 Study Quiz
______1. The economic view of value is ________, which can be interpreted as value is determined human use and human ideas.
a. biocentric.
b. physiocentric.
c. anthropocentric.
d. eccentric.
______2. When the consumer reserves the right to use the resource in the future this is called
a. existence value.
b. use value.
c. option value.
d. altruistic value.
______3. The indirect technique based on a theory of consumer behavior that says that people value a good because they value the characteristics of a good is
a. travel cost method.
b. contingent valuation method.
c. hedonic pricing technique.
d. conjoint analysis.
______4. If , on average, truck drivers are willing to accept a 1/2000 annual risk in death if their income increases by $5000 annually. What is the collective willingness to be compensated to accept the loss of a life?
a. $5 million.
b. $2 million.
c. $12 million.
d. $10 million.
______5. The travel cost method is based on the premise
a. a survey of individuals at different recreational sites will provide information about the appropriate level of pollution at camp sites.
b. that travel cost to a site can be regarded as the price of access to the site.
c. that individual measurements of consumer surplus can be used to generate an average value associated with a specific recreational site.
d. both b and c.
______6. The question "Would you be willing to pay $5 per month on your water bill if the money were used to correct this environmental problem?" is an example of
a. contingent valuation question.
b. an open-ended question.
c. a closed-ended question.
d. both a and c.
______7. Conjoint analysis can
a. be used to directly value national environmental policy scenarios where each scenario has different attributes.
b. can be used to determine the importance of various characteristics of forest quality.
c. can be used to bundle environmental characteristics with a tax burden.
d. be used to measure a, b and c.
______8. A benefit -cost analysis involves
a. a comparison of cost and benefits across a range of quality characteristics.
b. the use of conjoint analysis to determine the optimal bundling of environmental characteristics.
c. a consideration of the potential costs and benefits associated with a discrete decisions.
d. a comparison of alternative marginal damage functions associated with a set of environmental policies.
______9. Non-willingness to pay measures focus on ____________ and include _______.
a. cost-related measures; avoidance costs.
b. cost-related measures; conjoint analysis.
c. benefit-related measures; replacement costs.
d. benefit-related measures; meta-analysis..
______10. If a proposed project will yield $100 million each year for 5 years beginning in year 2 and will cost $200 million at the beginning of the first year and $50 million every year after that, the present value of net benefits associated with this project will be _______. Assume a discount rate of 5 percent.
a. will be a positive.
b. will be negative.
c. can not be determined without further information.
d. will be zero.
______11. Native
Americans viewed all plant and animal species as intrinsically valuable, a value
not defined in terms of human needs.
This approach to valuation is referred to as
a. anthropocentric.
b. biocentric.
c. antiquated.
d. impractical.