CHAPTER 6

What does Total Economic Value (TEV) consist of?

• Only direct and indirect use values

• Use value and non-use value

• Market and non-market values

• Economic and environmental values

Which of the following is an example of a Direct Use Value of a forest?

• Flood prevention

• Air purification

• Timber harvesting

• Climate regulation

The value people place on preserving resources for future use is called:

• Direct Use Value

• Indirect Use Value

• Option Value

• Existence Value

Which method is used to determine willingness to pay (WTP) using surveys and hypothetical scenarios?

• Travel Cost Method

• Hedonic Pricing Method

• Contingent Valuation Method

• Market Price Valuation

Which of the following is NOT a revealed preference method?

• Travel Cost Method

• Hedonic Pricing Method

• Choice Modeling

• Observed behavior-based valuation

What does the Travel Cost Method estimate?

• Property value near natural resources

• Spending behavior of tourists to infer site value

• Cost of restoring degraded land

• Shadow prices in market failures

What kind of value is assigned to forests for their role in air purification and water regulation?

• Existence Value

• Option Value

• Indirect Use Value

• Direct Use Value

The value people assign to resources like polar bears or rainforests, without intending to use them, is called:

• Indirect Use Value

• Existence Value

• Option Value

• Market Value

In which method does property value analysis help estimate environmental value?

• Imputed Valuation

• Hedonic Pricing Method

• Contingent Valuation Method

• Travel Cost Method

Which approach infers value based on the cost of replacing or restoring an environmental resource?

• Market-based Valuation

• Stated Preference

• Revealed Preference

• Imputed Valuation