Final answer:
Indirect methods are sometimes used to value natural resources like national parks where the economic value of ecosystem services is not easily quantifiable. Economists use tools like contingent valuation or travel cost methods to estimate the willingness to pay for these services.
Step-by-step explanation:
When valuing natural resources, there are instances where indirect methods need to be used. One example of a natural resource that requires indirect valuation is a national park. In this case, the indirect method would be used to estimate the economic value of the ecosystem services provided by the park, such as recreation, preservation of biodiversity, and carbon sequestration.
The indirect method is used because these ecosystem services do not have a market price and their value is not easily quantifiable. Instead, economists use tools like contingent valuation or travel cost methods to estimate the willingness to pay for these services.
Using these methods, economists can assess the economic value of natural resources like national parks, allowing policymakers to make informed decisions about their management and conservation.