(A). Environmental valuation for non-market goods uses the revealed preference method and stated preference method. Explain the basic differences between these two methods. Name and explain two stated preference methods and two revealed preference method. [4 points]

(B). What is the travel-cost method for valuing site-specific recreational activities? Briefly explain what it is and how it can be used to value recreational sites. Discuss two important criticisms of this method. [4 points]

(C).What are the two laws of thermodynamics? Explain their implications. [4 points]

(D).Explain whether the following statement is true, false or uncertain: there is an optimum scale for the economy as production is constrained by natural capital; and therefore, there is a limit to economic growth. [3 points]