The Hedonic Price Method Is a Way of Setting a Value

question 3

Multiple Choice

The hedonic price method is a way of setting a value on a social good based on

• A)how much people say they value that good when surveyed.
• B)how much an ideally rational individual would pay for that good.
• C)the popularity of a political party that advocates that good.
• D)how much it would cost the government to provide a substitute for that good.
• E)how much people are prepared to pay to acquire that good.

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Definitions:

Maker

Typically refers to the individual or entity that creates or executes a financial instrument, like a check or promissory note, thereby committing to the terms outlined therein.

Overdue

When an instrument is not paid when due or at maturity.

Reasonable Period

An amount of time regarded as fairly appropriate under the circumstances, considering what a rational person would deem sufficient.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to the order of a specific person or to the bearer.