5. An economist estimates the value of clean drinking water by looking at the amount that people spend on bottled water. This is an example of what type of economic valuation. a. Hedonic pricing b. Replacement cost methods c. Contingent valuation d. Travel cost models e. Defensive (Averting) expenditures 6. Which of the following is an example of an adaptive measure to global climate change? a. An increase in energy efficiency b. A global cap-and-trade permit system for carbon emissions c. Carbon taxes d. An increase in fuel efficiency standards e. Shifting agricultural cultivation patterns 7. If people are risk averse regarding environmental damages... a. Low discount rates should be used b. High discount rates should be used C. Expected values will understate environmental damages d. Irreversible actions should be taken e. Contingent valuation response will not be valid 8. Which one of the following statements is true? a. Cost-benefit analysis can give an accurate measure of all costs and benefits b. Cost-effectiveness analysis is always preferred to cost-benefit analysis c. Some costs and benefits will not be quantifiable in many cost-benefit analyses d. Policymakers should never use cost-benefit analysis due to its analytical weaknesses e. All projects that provide positive net benefits should be approved 9. Which statement below best describes the purpose of sensitivity analysis in benefit-cost analysis? a. To determine the validity of contingent valuation studies b. To determine if policy recommendations change based on different assumptions c. To determine the difference between benefit transfer values and original analysis d. To determine the potential biases of researchers e. To determine the correct degree of risk aversion in an analysis