Question 1

If John is willing to pay extra land taxes to keep a cell phone tower away from his
 home, then he is implicitly revealing his WTP for avoiding the nuisances/dangers
 associated with a cell phone tower.

Accepted Answer

A) True 
 B)False

Question 2

Figure 7B
 
-Refer to Figure 7B. The marginal damage cost curve implies that …

Accepted Answer

A)  Beyond Q2, society's WTP for the next incremental increase in environmental
 improvement is extremely high. 
B)  Beyond Q2, society's WTP for the next incremental increase in environmental
 improvement is extremely low. 
C)  At Q1, society's WTP is optimized. 
D)  At Q2, society's WTP is optimized. 
E)  None of the above.

Question 3

In the United States, the estimates for defensive environmental expenditure range
 between 25 to 50 percent of total GDP.

Accepted Answer

A) True 
 B)False

Question 4

An annual present value amount represents the value of X extra years of living
 (life) to an individual.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a limitation of the market pricing approach to evaluating environmental goods and services?

Accepted Answer

A)  One needs to use opportunity cost. 
B)  Only a few ecosystem services are traded in markets. 
C)  There are price distortions. 
D)  Markets for these goods are imperfect. 
E)  Demand and supply curves are not always well-defined.

Exam 7: Alternative Methods of Valuation of Environmental Goods and Services

If John is willing to pay extra land taxes to keep a cell phone tower away from his home, then he is implicitly revealing his WTP for avoiding the nuisances/dangers associated with a cell phone tower.

Figure 7B -Refer to Figure 7B. The marginal damage cost curve implies that …

In the United States, the estimates for defensive environmental expenditure range between 25 to 50 percent of total GDP.

An annual present value amount represents the value of X extra years of living (life) to an individual.

Which of the following is not a limitation of the market pricing approach to evaluating environmental goods and services?