Answer the following statement(s) true (T) or false (F)

1. When using a damage function, incremental benefits are measured as a vertical distance of total damages (TD) associated with a decrease in some contaminant (C).
2. The averting expenditure approach is favored by researchers because it can capture both existence and user value.
3. The contingent valuation method is so called because it is contingent upon the hypothetical market that serves as the context for the survey.
4. The benefit estimation method that relies on goods that are complements to environmental quality is the averting expenditure method.
5. A known problem associated with the averting expenditure method is jointness of production, which refers togoods that provide services beyond those that improve the environment.

1. True
2. False
3. True
4. False
5. True

Economics

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