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Unformatted text preview: as measured by his willingness-to-accept (WTA) – is
A. less than $500,000.
B. equal to $500,000.
C. greater than $500,000.
D. None of the above.
12. “WTP is a function of wealth but WTA is not”. True of false?
B. False. 29 13. A key difference between WTP and WTA as a measure of value is
A. that WTA is bounded by wealth but WTP is not.
B. that WTA is more reflective of underlying preferences than WTP.
C. the implied assignment of property rights as reflected in the reference point.
D. All of the above.
14. “The net social benefit of a project is independent on the distribution of wealth”. True
15. Economic values – as measured by WTP and WTA – are based on the existing
distribution of wealth because
A. the existing distribution of wealth is appropriate.
B. there is no role for policy to influence the distribution of wealth.
C. the existing distribution of wealth cannot be changed.
D. benefits and costs relative to the existing allocation of res...
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This document was uploaded on 03/03/2014.
- Spring '14