1- 26. The county supervisor sends out a survey via U. S. mail asking residents how much they are each willing to pay toward a new community swimming pool. This is an example of: a. contingent valuation. b. revealed preference valuation. c. cost-benefit analysis. d. social discounting.

The answer is option A) Sending out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool  is an example of contingent valuation.

Explanation:

Contingent Valuation is a survey based economic valuation technique. This is a method of estimating the value that a group of people places on a good.

The Contingent Valuation approach asks people to report their willingness to pay to obtain a product, or willingness to accept to give up a product.

Just like the case demonstrated above whereby the county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool.  

However, the approach is different in Revealed Preference valuation. Here inference is made from observed behaviors in regular market places.

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