Question

The county supervisor is considering building a community pool and has gathered data on how much residents are willing to pay. He sums up all of the valuations he has received and compares hat number to the estimated cost. This is an example of:

A. contingent valuation
B. revealed preference valuation
C. cost-benefit analysis
D. social discounting

Answer 1

Answer:

C. cost-benefit analysis

Explanation:

Cost - benefit analysis -

It is the method to analyse any decision in a very brief manner , is referred to as cost - benefit analysis .

The cost of the complete business or the project is calculated and analysed with the actual cost used for it .

The method is done with the help of certain models , data , records etc. in order to analyse even the minute details in a proper manner .

Hence , from the given scenario of the question ,

The correct answer is C. cost-benefit analysis .