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26 Oct 2024, 09:28
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Question 1
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
43% (02:30) correct
57%
(02:31) wrong
based on 964
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
80% (00:45) correct 20%
(00:49) wrong
based on 925
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
79% (01:08) correct 21%
(01:25) wrong
based on 924
sessions
History
Date
Time
Result
Not Attempted Yet
According to conventional economic theory, the economic value of a good or service is determined by the extent to which individuals desire the good or service. For goods and services (such as groceries) that are soon "used up," and that are traded in well-functioning markets in which consumers understand the product and its benefits reasonably well, market valuations can readily be calculated. But calculating the economic value of ecological goods (natural resources) and services (such as wetland preservation or global climate control) is more difficult, since they may last indefinitely and are generally not traded in markets (no one owns the air or water). Nor do individuals well understand the personal benefits of natural resources and ecological services. To determine the value of such goods and services, economists ask individuals what they would be willing to pay in a hypothetical market-for example, the maximum fees that they would be willing to pay to use national parks. This approach is problematic not only because of individuals' imperfect understanding of the benefits to themselves but also because of its inability to address possible future changes in people's willingness to pay for ecological goods and services. Moreover, individuals' willingness to pay for natural resources may depend on such factors as whether the expense is borne by all taxpayers or only by those individuals who pay user fees.
The author of the passage would be most likely to agree with which of the following statements about ecological goods and services?
A. Their economic value to individuals may be influenced by how the costs of the good or service are distributed.
B. Their monetary value is usually overestimated by economists utilizing conventional economic theory.
C. Their economic value to individuals can best be determined by ascertaining the maximum fees that people would be willing to pay for such goods and services.
D. People may understand the short-term benefits of such goods and services better than they understand the future benefits of such goods and services.
E. The main obstacle to calculating the economic value of such goods and services is the indefinite length of time over which they may exist.
A. Their economic value to individuals may be influenced by how the costs of the good or service are distributed.
B. Their monetary value is usually overestimated by economists utilizing conventional economic theory.
C. Their economic value to individuals can best be determined by ascertaining the maximum fees that people would be willing to pay for such goods and services.
D. People may understand the short-term benefits of such goods and services better than they understand the future benefits of such goods and services.
E. The main obstacle to calculating the economic value of such goods and services is the indefinite length of time over which they may exist.
The passage states that ecological goods and services differ from the goods and services mentioned in the highlighted text in that ecological goods and services
A. have fewer lasting benefits
B. are not usually traded in markets
C. are more likely to be paid for through taxes
D. are less willingly paid for by consumers
E. do not have an economic value that can be calculated
The author of the passage mentions "possible future changes" in the highlighted text most likely in order to
A. caution against the assumption that taxes are the best way to pay for many ecological goods and services
B. cite a factor that could affect economists' calculations of the economic value of ecological goods and services
C. explain why some economists are attempting to develop new methods for calculating the monetary value of ecological goods and services
D. suggest that people are likely to become more aware of the personal benefits of natural resources and ecological services
E. point out that ecological goods and services are likely to become increasingly costly
29 Oct 2024, 03:30
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29 Oct 2024, 23:22
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SergejK
Hello [b]SergejK MartyMurray @b_sudharsan @sajjad1994[/b]
Can someone please explain answer for Question 3? I opted for Option D here instead.
Thank you!
