Question 1

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

Accepted Answer

A)  Energy production with coal and gas generates less pollution.
B)  Wind and solar energy availability is subject to large fluctuations because of the inability to store the power.
C)  Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar.
D)  Consumers are largely unwilling to buy power generated from wind and solar.E) C) and D)
F) A) and B)

Question 2

Demographers predict that declines in birthrates are in part due to

Accepted Answer

A)  more strict adherence to religious beliefs and practices regarding human reproduction.
B)  fewer career opportunities for women in many societies.
C)  the increased expense of raising a child in modern societies.
D)  falling standards of living in many countries around the world.E) B) and C)
F) All of the above

Question 3

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

Question 4

If the property rights for forests are clear and enforced, then

Accepted Answer

A)  they will become common property.
B)  governments will not be able to overtax them.
C)  owners have profit incentives to harvest slowly over time.
D)  the logging of the forest will increase at an unsustainable rate.E) B) and D)
F) A) and C)

Question 5

Rapid population growth since 1800 has occurred primarily because of

Accepted Answer

A)  a significant increase in total fertility rates as living standards have risen.
B)  a significant reduction in death rates as living standards have risen.
C)  a significant increase in replacement rates as living standards have risen.
D)  all of the reasons given in the other possible answers.E) A) and B)
F) None of the above

Question 6

How is elephant preservation affected by property rights?

Accepted Answer

In certain countries, property rights ov...

Question 7

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

Question 8

Economists widely fear that the world will run out of energy in the next century.

Accepted Answer

A) True 
 B)False

Question 9

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, and Kara and Kyle both catch their quota, their combined profit will be

Accepted Answer

A)  $6,000.
B)  $14,000.
C)  $20,000.
D)  $30,000.E) None of the above
F) B) and C)

Question 10

The goal of profit-maximizing extraction firms such as an oil company or a mining company is to extract resources

Accepted Answer

A)  as fast as possible.
B)  as slowly as possible.
C)  when the user costs are rising.
D)  for the greatest stream of profit over time.E) A) and C)
F) B) and C)

Question 11

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the best example of a fishery?

Accepted Answer

A)  all marine life along the Great Barrier Reef
B)  Pacific halibut
C)  U.S. Department of Fish and Game
D)  crabE) C) and D)
F) B) and D)

Question 13

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would cause the present optimal extraction level of a nonrenewable resource to rise?

Accepted Answer

A)  a decrease in the price of the resource
B)  an increase in the extraction cost of the resource
C)  a decrease in the user cost of the resource
D)  a decrease in interest ratesE) None of the above
F) B) and C)

Question 15

According to the concept of present value, a $50 barrel of oil today is worth

Accepted Answer

A)  less than a $50 barrel in 2 years.
B)  more than a $50 barrel in 2 years.
C)  the same as a $50 barrel in 2 years.
D)  the same as a $50 barrel in 2 years, but only if there is no inflation during those 2 years.E) B) and D)
F) A) and B)

Question 16

About three-fourths of U.S. electricity is generated using coal, natural gas, and petroleum.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following nations, as of 2018, has a total fertility rate that would suggest that its next generation will be significantly smaller the current generation?

Accepted Answer

A)  Japan
B)  Bangladesh
C)  Mexico
D)  all of these nationsE) None of the above
F) A) and C)

Question 18

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Accepted Answer

A)  an increase in the present value of expected future profits
B)  a decrease in extraction costs
C)  a decrease in user costs
D)  an increase in the current price of the resourceE) A) and B)
F) C) and D)

Question 19

Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Joe offered to sell his ITQ to Ronny for $7,000, he and Ronny would

Accepted Answer

A)  make the sale because they're both better off.
B)  not make the sale, because Joe is better off and Ronny is not.
C)  not make the sale, because Ronny is better of and Joe is not.
D)  not make the sale, because neither is better off.E) None of the above
F) A) and B)

Question 20

Average per capita water consumption in the United States was approximately how many gallons per day in 2015?

Accepted Answer

A)  322
B)  1,134
C)  1,941
D)  991E) C) and D)
F) A) and B)

Exam 19: Natural Resource and Energy Economics

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

Correct Answer
verified

The goal of profit-maximizing extraction firms such as an oil company or a mining company is to extract resources

Correct Answer
verified

Rapid population growth since 1800 has occurred primarily because of

Correct Answer
verified

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

Correct Answer
verified

Economists widely fear that the world will run out of energy in the next century.

Correct Answer
verified

About three-fourths of U.S. electricity is generated using coal, natural gas, and petroleum.

Correct Answer
verified

Which of the following would cause the present optimal extraction level of a nonrenewable resource to rise?

Correct Answer
verified

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

Correct Answer
verified

Which of the following nations, as of 2018, has a total fertility rate that would suggest that its next generation will be significantly smaller the current generation?

Correct Answer
verified

Which of the following is the best example of a fishery?

Correct Answer
verified

How is elephant preservation affected by property rights?

Correct Answer
verified
In certain countries, property rights ov...
View Answer

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

Correct Answer
verified

Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Joe offered to sell his ITQ to Ronny for $7,000, he and Ronny would

Correct Answer
verified

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Correct Answer
verified

Correct Answer
verified

Demographers predict that declines in birthrates are in part due to

Correct Answer
verified

If the property rights for forests are clear and enforced, then

Correct Answer
verified

Average per capita water consumption in the United States was approximately how many gallons per day in 2015?

Correct Answer
verified

According to the concept of present value, a $50 barrel of oil today is worth

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

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

Correct AnswerverifiedShow Answer

The goal of profit-maximizing extraction firms such as an oil company or a mining company is to extract resources

Correct AnswerverifiedShow Answer

Rapid population growth since 1800 has occurred primarily because of

Correct AnswerverifiedShow Answer

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

Correct AnswerverifiedShow Answer

Economists widely fear that the world will run out of energy in the next century.

Correct AnswerverifiedShow Answer

About three-fourths of U.S. electricity is generated using coal, natural gas, and petroleum.

Correct AnswerverifiedShow Answer

Which of the following would cause the present optimal extraction level of a nonrenewable resource to rise?

Correct AnswerverifiedShow Answer

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

Correct AnswerverifiedShow Answer

Which of the following nations, as of 2018, has a total fertility rate that would suggest that its next generation will be significantly smaller the current generation?

Correct AnswerverifiedShow Answer

Which of the following is the best example of a fishery?

Correct AnswerverifiedShow Answer

How is elephant preservation affected by property rights?

Correct AnswerverifiedIn certain countries, property rights ov...View AnswerShow Answer

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

Correct AnswerverifiedShow Answer

Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Joe offered to sell his ITQ to Ronny for $7,000, he and Ronny would

Correct AnswerverifiedShow Answer

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Demographers predict that declines in birthrates are in part due to

Correct AnswerverifiedShow Answer

If the property rights for forests are clear and enforced, then

Correct AnswerverifiedShow Answer

Average per capita water consumption in the United States was approximately how many gallons per day in 2015?

Correct AnswerverifiedShow Answer

According to the concept of present value, a $50 barrel of oil today is worth

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
In certain countries, property rights ov...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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