Question 1

Elephant populations have

Accepted Answer

A)  expanded everywhere because of state control of elephant populations.
B)  declined in countries where they are owned by local villages and expanded where they are owned by the state.
C)  expanded in countries where they are owned by local villages and declined where they are owned by the state.
D)  declined everywhere, regardless of whether property rights over elephants are recognized.E) None of the above
F) All of the above

Question 2

Demographers expect world population to peak and then decline in the twenty-first century.

Accepted Answer

A) True 
 B)False

Question 3

According to the concept of demographic transition,

Accepted Answer

A)  population growth rates should slow as nations move into the final stage.
B)  population growth rates should rise as nations move into the final stage.
C)  population growth becomes exponential when nations are in the final stage.
D)  population plummets in the transition phase.E) All of the above
F) B) and D)

Question 4

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Accepted Answer

A)  reduce extraction in the present.
B)  increase the current rate of extraction.
C)  invest in less extraction equipment.
D)  hire more workers to support current production.E) B) and D)
F) C) and D)

Question 5

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

Accepted Answer

A)  reduce the costs of production to the lowest possible level.
B)  increase the benefits from production to the highest possible level.
C)  weigh the net benefits of current use with the net benefits of future use.
D)  add the net benefits of current use to the net benefits of future use.E) None of the above
F) A) and C)

Question 6

Property rights over fish in the open ocean exist once the fish are caught.

Accepted Answer

A) True 
 B)False

Question 7

The higher a resource's current price, the more extraction should be delayed to a later period.

Accepted Answer

A) True 
 B)False

Question 8

Alex and Ben are both loggers wanting to harvest timber from the same forest.Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit and then move on.They face the same production costs.If no explicit property right is given over the forest land, then

Accepted Answer

A)  a property right will be established when trees are cut down and brought to market.
B)  there is no property right over the harvested timber.
C)  Alex and Ben will likely work out an agreement on harvesting and replanting the land.
D)  that implies that government owns and regulates its use.E) A) and C)
F) A) and D)

Question 9

Petroleum is the largest source of electric energy generated in the U.S.

Accepted Answer

A) True 
 B)False

Question 10

In fisheries management, ITQ stands for

Accepted Answer

A)  international transferable quota.
B)  individual transferable quota.
C)  international tuna quotas.
D)  individual trolling quotas.E) C) and D)
F) None of the above

Question 11

The long-run fall of commodity prices implies that commodity supplies have grown

Accepted Answer

A)  faster than the rate of productivity in the economy.
B)  more slowly than total resource consumption.
C)  faster than total resource consumption.
D)  more slowly than the inflation rate.E) A) and C)
F) C) and D)

Question 12

(Last Word)  In 2012, the countries with the highest scores on the Environmental Performance Index were

Accepted Answer

A)  the United States and Tanzania.
B)  Switzerland and Latvia.
C)  New Zealand and Sweden.
D)  Brazil and Australia.Topic: Resource Supplies: Doom or Boom?E) A) and B)
F) A) and C)

Question 13

If per capita trash generation is constant over time, this implies that

Accepted Answer

A)  per capita consumption of solids has also been constant.
B)  per capita consumption of goods and services has also been constant.
C)  total consumption of solids has also been constant.
D)  total consumption of goods and services has also been constant.E) B) and D)
F) None of the above

Question 14

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

Accepted Answer

A)  decrease, while the amount of current extraction increases.
B)  decrease, and the amount of current extraction decreases.
C)  increase, and the amount of current extraction increases.
D)  increase, while the amount of current extraction decreases.E) None of the above
F) A) and B)

Question 15

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Accepted Answer

A)  Thailand
B)  Puerto Rico
C)  Nigeria
D)  United StatesE) B) and D)
F) All of the above

Question 16

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Accepted Answer

A)  It will be overlogged by loggers.
B)  It will be underlogged by loggers.
C)  It will be preserved for future use by loggers.
D)  It will become the common property of the government.E) B) and C)
F) A) and B)

Question 17

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Accepted Answer

A) True 
 B)False

Question 18

Per capita water use in the United States has steadily increased since 1973.

Accepted Answer

A) True 
 B)False

Question 19

A fishery is typically identified by

Accepted Answer

A)  location and size.
B)  location and species.
C)  species and size.
D)  species and market value.E) All of the above
F) A) and D)

Question 20

The user cost of extracting a nonrenewable resource is

Accepted Answer

A)  the sum of the dollar expenditures incurred to extract the resource.
B)  the cost of not being able to extract it in the future if it is extracted and sold in the present.
C)  the selling price of the resource to the companies using it to produce goods and services.
D)  directly proportional to how much of the nonrenewable resource remains.E) B) and C)
F) B) and D)

Exam 19: Natural Resource and Energy Economics

Demographers expect world population to peak and then decline in the twenty-first century.

Correct Answer
verified

Correct Answer
verified

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Correct Answer
verified

The user cost of extracting a nonrenewable resource is

Correct Answer
verified

Per capita water use in the United States has steadily increased since 1973.

Correct Answer
verified

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

Correct Answer
verified

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Correct Answer
verified

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Correct Answer
verified

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Correct Answer
verified

A fishery is typically identified by

Correct Answer
verified

The long-run fall of commodity prices implies that commodity supplies have grown

Correct Answer
verified

If per capita trash generation is constant over time, this implies that

Correct Answer
verified

Elephant populations have

Correct Answer
verified

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

Correct Answer
verified

The higher a resource's current price, the more extraction should be delayed to a later period.

Correct Answer
verified

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

Correct Answer
verified

Property rights over fish in the open ocean exist once the fish are caught.

Correct Answer
verified

According to the concept of demographic transition,

Correct Answer
verified

In fisheries management, ITQ stands for

Correct Answer
verified

Petroleum is the largest source of electric energy generated in the U.S.

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

Demographers expect world population to peak and then decline in the twenty-first century.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Correct AnswerverifiedShow Answer

The user cost of extracting a nonrenewable resource is

Correct AnswerverifiedShow Answer

Per capita water use in the United States has steadily increased since 1973.

Correct AnswerverifiedShow Answer

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

Correct AnswerverifiedShow Answer

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Correct AnswerverifiedShow Answer

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Correct AnswerverifiedShow Answer

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Correct AnswerverifiedShow Answer

A fishery is typically identified by

Correct AnswerverifiedShow Answer

The long-run fall of commodity prices implies that commodity supplies have grown

Correct AnswerverifiedShow Answer

If per capita trash generation is constant over time, this implies that

Correct AnswerverifiedShow Answer

Elephant populations have

Correct AnswerverifiedShow Answer

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

Correct AnswerverifiedShow Answer

The higher a resource's current price, the more extraction should be delayed to a later period.

Correct AnswerverifiedShow Answer

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

Correct AnswerverifiedShow Answer

Property rights over fish in the open ocean exist once the fish are caught.

Correct AnswerverifiedShow Answer

According to the concept of demographic transition,

Correct AnswerverifiedShow Answer

In fisheries management, ITQ stands for

Correct AnswerverifiedShow Answer

Petroleum is the largest source of electric energy generated in the U.S.

Correct AnswerverifiedShow Answer

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