Question 1

The world's population increased so rapidly from 1800 to the present day because of higher

Accepted Answer

A)  birthrates and lower standards of living.
B)  standards of living and higher birthrates.
C)  standards of living and lower death rates.
D)  death rates and higher standards of living.E) All of the above
F) A) and B)

Question 2

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Accepted Answer

A)  more efficiently allocate resources.
B)  overvalue future resources by considering them "priceless."
C)  stop resource extraction.
D)  extract and use resources as quickly as possible.E) C) and D)
F) All of the above

Question 3

An energy company has recently discovered a natural gas reserve.The company can tap this reserve at a cost of $350,000 and obtain a profit of $450,000 in three years.The current market rate is 15 percent.Should the company make the investment?

Accepted Answer

A)  Yes, the future value of the profit is greater than the present value of the cost.
B)  No, the future value of the profit is less than the present value of the cost.
C)  Yes, the present value of the profit is greater than the present value of the cost.
D)  No, the present value of the profit is less than the present value of the cost.E) A) and D)
F) B) and D)

Question 4

The user cost of nonrenewable resources is

Accepted Answer

A)  the current cost of extracting and selling the resource.
B)  the future cost of extracting and selling the resource.
C)  the opportunity cost of extracting and selling the resource today instead of in the future.
D)  the cost of future extraction and sale of a resource instead of current extraction and sale.E) All of the above
F) B) and C)

Question 5

Resource demand has grown over time

Accepted Answer

A)  because of population growth only.
B)  because of increased consumption per person only.
C)  because of both increased population and greater consumption per person.
D)  despite decreases in population and consumption per person.E) C) and D)
F) B) and C)

Question 6

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Accepted Answer

A) True 
 B)False

Question 7

The Malthusian prediction of Paul Ehrlich in The Population Bomb in 1968 proved to be wrong because population growth

Accepted Answer

A)  slowed dramatically as standards of living decreased.
B)  slowed dramatically as standards of living increased.
C)  rose dramatically as standards of living decreased.
D)  rose dramatically as standards of living increased.E) All of the above
F) C) and D)

Question 8

Kara and Kyle are competing sockeye salmon fishers.Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each.Kara's cost per ton is $8; Kyle's cost per ton is $12.If the market price of sockeye salmon is $15 per ton, what is the maximum amount Kara would be willing to pay per ton for Kyle's ITQs?

Accepted Answer

A)  $3
B)  $7
C)  $8
D)  $15E) A) and B)
F) B) and C)

Question 9

One major reason why the survival of elephants is threatened is that

Accepted Answer

A)  villages near elephants have high unemployment.
B)  governments have overtaxed elephant safaris.
C)  there is a lack of incentive for elephant preservation.
D)  the number of tourists interested in elephants has declined.E) A) and C)
F) B) and D)

Question 10

A Middle Eastern country has an oil reserve that it can extract for a profit of $60 a barrel today, $65 a barrel in two years, $70 a barrel in three years, and $75 in four years.The current market rate of interest is 7 percent.When should this country tap into its oil reserve to obtain the most profit per barrel in
Present value terms?

Accepted Answer

A)  today
B)  two years
C)  three years
D)  four yearsE) C) and D)
F) A) and C)

Question 11

The key difficulty with fishery management is that

Accepted Answer

A)  the only way to establish property rights over a fish swimming in the ocean is to catch and kill it.
B)  fishery management deals with live resources while forestry does not.
C)  it deals with a nonrenewable resource.
D)  there are so many types of fish, and theyâ€™re found in so many locations.E) A) and D)
F) C) and D)

Question 12

Other things equal, biodiesel becomes economically viable (as or less costly than using oil)  when oil prices reach or more per barrel.

Accepted Answer

A)  $60
B)  $80
C)  $100
D)  $120E) C) and D)
F) A) and B)

Question 13

Optimal resource allocation involves considering current and future uses, benefits, and costs.

Accepted Answer

A) True 
 B)False

Question 14

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 15

(Consider This)  Which of the following nations has implemented policies that pay women to have additional children?

Accepted Answer

A)  Italy
B)  United States
C)  China
D)  all of these nationsE) A) and B)
F) All of the above

Question 16

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

Accepted Answer

A)  selling price of the resource equals the extraction cost plus the user cost of the resource.
B)  selling price of the resource equals the total cost plus the user cost of the resource.
C)  selling price of the resource equals the extraction cost of the resource.
D)  extraction cost of the resource equals the user cost of the resource.E) C) and D)
F) A) and B)

Question 17

Which of the following nations, as of 2015, has a total fertility rate that would suggest that its next generation will be just over half the size of the current generation?

Accepted Answer

A)  Hong Kong
B)  Australia
C)  Sweden
D)  all of these nationsE) B) and D)
F) B) and C)

Question 18

A fishery collapse

Accepted Answer

A)  necessarily happens when harvesting rates increase.
B)  necessarily happens when reproduction rates fall.
C)  occurs when harvesting outpaces reproduction for an extended period.
D)  is irreversible.E) A) and C)
F) B) and C)

Question 19

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Accepted Answer

A)  renewable natural resources.
B)  natural capital.
C)  nonrenewable natural resources.
D)  fossil fuels.E) B) and D)
F) C) and D)

Question 20

At any level of a mining firm's output, total cost will be equal to extraction costs

Accepted Answer

A)  plus user costs.
B)  minus user costs.
C)  times user costs.
D)  divided by user costs.E) B) and C)
F) A) and B)

Exam 19: Natural Resource and Energy Economics

An energy company has recently discovered a natural gas reserve.The company can tap this reserve at a cost of $350,000 and obtain a profit of $450,000 in three years.The current market rate is 15 percent.Should the company make the investment?

Correct Answer
verified

One major reason why the survival of elephants is threatened is that

Correct Answer
verified

Optimal resource allocation involves considering current and future uses, benefits, and costs.

Correct Answer
verified

The key difficulty with fishery management is that

Correct Answer
verified

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Correct Answer
verified

TAC policies help reduce overfishing and reduce costs for fishers.

Correct Answer
verified

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Correct Answer
verified

A fishery collapse

Correct Answer
verified

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Correct Answer
verified

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Correct Answer
verified

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Correct Answer
verified

Correct Answer
verified

Which of the following nations, as of 2015, has a total fertility rate that would suggest that its next generation will be just over half the size of the current generation?

Correct Answer
verified

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

Correct Answer
verified

The world's population increased so rapidly from 1800 to the present day because of higher

Correct Answer
verified

The Malthusian prediction of Paul Ehrlich in The Population Bomb in 1968 proved to be wrong because population growth

Correct Answer
verified

Resource demand has grown over time

Correct Answer
verified

Correct Answer
verified

At any level of a mining firm's output, total cost will be equal to extraction costs

Correct Answer
verified

The user cost of nonrenewable resources is

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

An energy company has recently discovered a natural gas reserve.The company can tap this reserve at a cost of $350,000 and obtain a profit of $450,000 in three years.The current market rate is 15 percent.Should the company make the investment?

Correct AnswerverifiedShow Answer

One major reason why the survival of elephants is threatened is that

Correct AnswerverifiedShow Answer

Optimal resource allocation involves considering current and future uses, benefits, and costs.

Correct AnswerverifiedShow Answer

The key difficulty with fishery management is that

Correct AnswerverifiedShow Answer

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Correct AnswerverifiedShow Answer

TAC policies help reduce overfishing and reduce costs for fishers.

Correct AnswerverifiedShow Answer

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Correct AnswerverifiedShow Answer

A fishery collapse

Correct AnswerverifiedShow Answer

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Correct AnswerverifiedShow Answer

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Correct AnswerverifiedShow Answer

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following nations, as of 2015, has a total fertility rate that would suggest that its next generation will be just over half the size of the current generation?

Correct AnswerverifiedShow Answer

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

Correct AnswerverifiedShow Answer

The world's population increased so rapidly from 1800 to the present day because of higher

Correct AnswerverifiedShow Answer

The Malthusian prediction of Paul Ehrlich in The Population Bomb in 1968 proved to be wrong because population growth

Correct AnswerverifiedShow Answer

Resource demand has grown over time

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At any level of a mining firm's output, total cost will be equal to extraction costs

Correct AnswerverifiedShow Answer

The user cost of nonrenewable resources is

Correct AnswerverifiedShow Answer

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