MULTIPLE CHOICE (1 point each - 4 points total, CIRCLE THE CORRECT ANSWER): 1. Contingent valuation techniques a are the only known way to measure "existence values." b are typically more reliable than revealed preference valuation techniques. c show that quality of life in a city is inversely proportional to real wages. d reveal that the value of a human life is roughly $7 million. 2. Say that households are mobile across cities and have similar preferences. Say that Houston has the same wages as Chicago but lower costs-of-living. Then we may infer that, a Houston has higher quality of life and lower productivity b Houston has higher quality of life and higher productivity c Houston has lower quality of life and lower productivity d Houston has lower quality of life and higher productivity 3. Which of the following expenditure programs is the largest in the United States? a National Endowment for the Arts b National Highway System c Federal (Title I) Spending on Schools d Old Age, Survivors, and Disability Insurance. 4. Which of the following type of government spending appears to cur- rently face the largest fiscal imbalance in the future? a Health b Education c Defense d Income Maintenance 2