Answer:
The answer is option A) Sending out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool is an example of contingent valuation.
Explanation:
Contingent Valuation is a survey based economic valuation technique. This is a method of estimating the value that a group of people places on a good.
The Contingent Valuation approach asks people to report their willingness to pay to obtain a product, or willingness to accept to give up a product.
Just like the case demonstrated above whereby the county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool.
However, the approach is different in Revealed Preference valuation. Here inference is made from observed behaviors in regular market places.
Answer:
a. contingent valuation.
Explanation:
Contingent valuation is a method of estimating a value that a person places on product or service. In this method people are being asked for the their willingness to pay for a particular product or service and their willingness to accept or reject the product / service.
In this question the Country Supervisor is asking the resident whether they are each willing to pay toward a new community swimming pool.
