Question 1

Relative to 1800, today in the world there are

Accepted Answer

A)  more people but lower per-capita consumption.
B)  more people but the same per-capita consumption.
C)  more people and higher per-capita consumption.
D)  the same number of people but higher per-capita consumption.E) B) and D)
F) A) and D)

Question 2

In 2017, according to U.S. Energy Information Administration data, which of the following sources of energy contributed the largest share to U.S. electricity generation?

Accepted Answer

A)  petroleum
B)  nuclear
C)  hydropower
D)  natural gasE) B) and C)
F) A) and B)

Question 3

An electricity company is considering damming a small river to generate electricity at a cost of $250,000 and a profit of $300,000 in 5 years. The current market rate of interest is 3 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)  No, the present value of the profit is less than the present value of the cost.
D)  Yes, the present value of the profit is greater than the present value of the cost.E) All of the above
F) B) and C)

Question 4

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

Accepted Answer

A) True 
 B)False

Question 5

A fishery collapse occurs when the

Accepted Answer

A)  fishery goes out of business.
B)  fishery is taken over by a government agency.
C)  fishery's population is harvested at a higher rate than it reproduces.
D)  fishery's population reproduces at a higher rate than it's harvested.E) All of the above
F) B) and D)

Question 6

Refer to the diagram, representing Slippery Slope Oil Company. How many million barrels should Slippery Slope extract and sell this year?

Accepted Answer

A)  5
B)  10
C)  15
D)  It cannot be determined with the information given.E) B) and D)
F) C) and D)

Question 7

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) A) and B)
F) B) and C)

Question 8

A user cost of zero implies that

Accepted Answer

A)  a firm will extract all of a resource in the present.
B)  a firm will extract resources at a faster rate than if the user cost was positive.
C)  a firm will extract resources at a faster rate than if the user cost was negative.
D)  the price of the resource will not change.E) B) and C)
F) All of the above

Question 9

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

Accepted Answer

A) True 
 B)False

Question 10

If predictions that the world will run out of oil or petroleum in the next century become true, then

Accepted Answer

A)  the world would run out of energy.
B)  alternative sources would become viable.
C)  economies would grind to a halt.
D)  population will decline due to starvation.E) A) and D)
F) A) and C)

Question 11

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) C) and D)

Question 12

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

Accepted Answer

A) True 
 B)False

Question 13

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Accepted Answer

A) True 
 B)False

Question 14

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Accepted Answer

A)  extraction cost.
B)  future cost.
C)  conservation cost.
D)  user cost.E) A) and B)
F) A) and C)

Question 15

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Accepted Answer

A)  each generation will be one-fourth as large as the previous one.
B)  each generation will be half as large as the previous one.
C)  each generation will be as large as the previous one.
D)  each generation will be one-half larger than the previous.E) B) and D)
F) All of the above

Question 16

Based on the fertility-rate calculations for major industrialized countries, their populations are expected to decline significantly in the coming years because the

Accepted Answer

A)  total fertility rate is higher than the replacement rate.
B)  total fertility rate is below the replacement rate.
C)  fertility rate and the replacement rate are about equal.
D)  fertility rate divided by the replacement rate is greater than one.E) B) and C)
F) A) and B)

Question 17

Under a TAC system, fishing of a particular fishery is halted after

Accepted Answer

A)  a predetermined time period.
B)  a predetermined amount of fish has been caught.
C)  a predetermined number of fishing trips have been taken by each registered boat.
D)  the market price of the fish falls below a predetermined trigger price.E) B) and D)
F) A) and B)

Question 18

Which of the following policies has succeeded in reducing fishery catch sizes?

Accepted Answer

A)  limiting the length of the catch season
B)  limiting the number of boats allowed in a given area
C)  limiting catch size (TA
C)  
D)  All of the other possible answers are correct.E) A) and B)
F) A) and C)

Question 19

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

Accepted Answer

A) True 
 B)False

Question 20

Alex and Belle are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Belle wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. The forest is more likely to be harvested and replanted at a sustainable rate if

Accepted Answer

A)  property rights are well defined and enforced.
B)  property rights are weak or nonexistent.
C)  there is no government protection of property rights and the parties can negotiate a settlement.
D)  Belle is given sole ownership of the property.E) A) and D)
F) None of the above

Exam 19: Natural Resource and Energy Economics

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Correct Answer
verified

Which of the following policies has succeeded in reducing fishery catch sizes?

Correct Answer
verified

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Correct Answer
verified

Relative to 1800, today in the world there are

Correct Answer
verified

A user cost of zero implies that

Correct Answer
verified

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

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

Under a TAC system, fishing of a particular fishery is halted after

Correct Answer
verified

In 2017, according to U.S. Energy Information Administration data, which of the following sources of energy contributed the largest share to U.S. electricity generation?

Correct Answer
verified

Based on the fertility-rate calculations for major industrialized countries, their populations are expected to decline significantly in the coming years because the

Correct Answer
verified

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

Correct Answer
verified

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Correct Answer
verified

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

Correct Answer
verified

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

Correct Answer
verified

A fishery collapse occurs when the

Correct Answer
verified

An electricity company is considering damming a small river to generate electricity at a cost of $250,000 and a profit of $300,000 in 5 years. The current market rate of interest is 3 percent. Should the company make the investment?

Correct Answer
verified

According to the concept of demographic transition,

Correct Answer
verified

If predictions that the world will run out of oil or petroleum in the next century become true, then

Correct Answer
verified

Correct Answer
verified

Refer to the diagram, representing Slippery Slope Oil Company. How many million barrels should Slippery Slope extract and sell this year?

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Correct AnswerverifiedShow Answer

Which of the following policies has succeeded in reducing fishery catch sizes?

Correct AnswerverifiedShow Answer

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Correct AnswerverifiedShow Answer

Relative to 1800, today in the world there are

Correct AnswerverifiedShow Answer

A user cost of zero implies that

Correct AnswerverifiedShow Answer

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

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

Under a TAC system, fishing of a particular fishery is halted after

Correct AnswerverifiedShow Answer

In 2017, according to U.S. Energy Information Administration data, which of the following sources of energy contributed the largest share to U.S. electricity generation?

Correct AnswerverifiedShow Answer

Based on the fertility-rate calculations for major industrialized countries, their populations are expected to decline significantly in the coming years because the

Correct AnswerverifiedShow Answer

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

Correct AnswerverifiedShow Answer

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Correct AnswerverifiedShow Answer

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

Correct AnswerverifiedShow Answer

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

Correct AnswerverifiedShow Answer

A fishery collapse occurs when the

Correct AnswerverifiedShow Answer

An electricity company is considering damming a small river to generate electricity at a cost of $250,000 and a profit of $300,000 in 5 years. The current market rate of interest is 3 percent. Should the company make the investment?

Correct AnswerverifiedShow Answer

According to the concept of demographic transition,

Correct AnswerverifiedShow Answer

If predictions that the world will run out of oil or petroleum in the next century become true, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the diagram, representing Slippery Slope Oil Company. How many million barrels should Slippery Slope extract and sell this year?

Correct AnswerverifiedShow Answer

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