Question 1

Electricity generating plants with low fixed costs tend to have high operating costs.

Accepted Answer

A) True 
 B)False

Question 2

The user cost of extracting a nonrenewable resource is

Accepted Answer

A)   inversely related to how much of the resource remains.
B)   directly related to how much of the resource remains.
C)   unrelated to how much of the resource remains.
D)   inversely related to the expected future price of the resource.E) None of the above
F) A) and B)

Question 3

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having

Accepted Answer

A)   high rates of inflation.
B)   high rates of unemployment.
C)   too many soldiers for national defense.
D)   too few workers to support social programs.E) B) and C)
F) C) and D)

Question 4

Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago.

Accepted Answer

A) True 
 B)False

Question 5

In fisheries management, a fishery is defined as

Accepted Answer

A)   an operation that breeds and releases fish and other marine animals into the wild.
B)   a stock of fish or other marine animals that can be thought of as a logically distinct group.
C)   a company that harvests fish or other marine animals.
D)   a government organization that regulates the harvesting of fish and other marine animals.E) All of the above
F) B) and C)

Question 6

Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy.

Accepted Answer

A) True 
 B)False  True

Question 7

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. Assume that the market price of sockeye salmon is $15 per ton. If Kara pays Kyle $5 per ton for his ITQs, and if she then catches her new limit of 4,000 tons, her profit would be

Accepted Answer

A)   $18,000.
B)   $22,000.
C)   $20,000.
D)   $4,000.E) C) and D)
F) None of the above

Question 8

Which of the following is the best example of a market failure that would lead a firm to extract resources at a rate that is faster than the rate that would maximize its long-term stream of profits?

Accepted Answer

A)   The market price of the resource rises.
B)   Weak property rights create fears that firms will not be allowed to extract in the future.
C)   Market interest rates increase.
D)   New information suggests that the demand for the resource will be greater in the future.E) C) and D)
F) All of the above

Question 9

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Accepted Answer

A)   valid because high standards of living have produced higher birthrates.
B)   valid because high standards of living have produced lower birthrates.
C)   invalid because high standards of living have produced higher birthrates.
D)   invalid because high standards of living have produced lower birthrates.E) B) and C)
F) All of the above

Question 10

Which of the following explains why commodity prices have fallen since 1850?

Accepted Answer

A)   The demand for productive resources has fallen faster than the supply of those resources.
B)   The demand for productive resources has grown faster than the supply of those resources.
C)   The supply of productive resources has increased, while the demand has fallen.
D)   The supply of productive resources has grown faster than the demand for those resources.E) A) and B)
F) B) and C)

Question 11

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) A) and B)
F) All of the above

Question 12

Over the past decade, total and per capita trash generated in the United States have

Accepted Answer

A)   both increased at about the same rate.
B)   increased slightly and leveled off, respectively.
C)   both fallen.
D)   leveled off and fallen, respectively.E) A) and D)
F) None of the above

Question 13

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

Question 14

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Accepted Answer

A)   minimize the net costs from doing so.
B)   maximize the net benefits from doing so.
C)   minimize the negative externalities of doing so.
D)   maximize the positive externalities of doing so.E) B) and C)
F) A) and D)

Question 15

An example of a nonrenewable resource would be

Accepted Answer

A)   forests.
B)   oceans.
C)   gold ore.
D)   solar energy.E) All of the above
F) C) and D)

Question 16

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Accepted Answer

A) True 
 B)False

Question 17

Since 1850, the

Accepted Answer

A)   supply and demand for productive resources have grown at the same rate.
B)   supply of productive resources has grown faster than the demand for those resources.
C)   demand for productive resources has grown faster than the supply of those resources.
D)   supply of productive resources has increased, while the demand has fallen.E) A) and B)
F) A) and C)

Question 18

If a country's replacement rate is two births per woman and its total fertility rate is four births per woman, the country's population will decline.

Accepted Answer

A) True 
 B)False

Question 19

Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ and the current market price is $5 per ton. If Dave offered to sell his ITQ to Sue for $2,000, he and Sue would

Accepted Answer

A)   make the sale because they're both better off.
B)   not make the sale, because Sue is better off and Dave is not.
C)   not make the sale, because Dave is better of and Sue is not.
D)   not make the sale, because neither is better off.E) All of the above
F) A) and B)

Question 20

In 2015, about what percentage of the world's land area was forested?

Accepted Answer

A)   10 percent
B)   30 percent
C)   50 percent
D)   75 percentE) A) and D)
F) A) and C) B

Exam 19: Natural Resource and Energy Economics

Electricity generating plants with low fixed costs tend to have high operating costs.

Correct Answer
verified

The user cost of extracting a nonrenewable resource is

Correct Answer
verified

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having

Correct Answer
verified

Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago.

Correct Answer
verified

In fisheries management, a fishery is defined as

Correct Answer
verified

Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy.

Correct Answer
verified
True

Correct Answer
verified

Which of the following is the best example of a market failure that would lead a firm to extract resources at a rate that is faster than the rate that would maximize its long-term stream of profits?

Correct Answer
verified

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Correct Answer
verified

Which of the following explains why commodity prices have fallen since 1850?

Correct Answer
verified

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

Correct Answer
verified

Over the past decade, total and per capita trash generated in the United States have

Correct Answer
verified

Correct Answer
verified
C

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Correct Answer
verified

An example of a nonrenewable resource would be

Correct Answer
verified

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Correct Answer
verified

Since 1850, the

Correct Answer
verified

If a country's replacement rate is two births per woman and its total fertility rate is four births per woman, the country's population will decline.

Correct Answer
verified

Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ and the current market price is $5 per ton. If Dave offered to sell his ITQ to Sue for $2,000, he and Sue would

Correct Answer
verified

In 2015, about what percentage of the world's land area was forested?

Correct Answer
verified
B

Exam 19: Natural Resource and Energy Economics

Electricity generating plants with low fixed costs tend to have high operating costs.

Correct AnswerverifiedShow Answer

The user cost of extracting a nonrenewable resource is

Correct AnswerverifiedShow Answer

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having

Correct AnswerverifiedShow Answer

Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago.

Correct AnswerverifiedShow Answer

In fisheries management, a fishery is defined as

Correct AnswerverifiedShow Answer

Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

Which of the following is the best example of a market failure that would lead a firm to extract resources at a rate that is faster than the rate that would maximize its long-term stream of profits?

Correct AnswerverifiedShow Answer

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Correct AnswerverifiedShow Answer

Which of the following explains why commodity prices have fallen since 1850?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Over the past decade, total and per capita trash generated in the United States have

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Correct AnswerverifiedShow Answer

An example of a nonrenewable resource would be

Correct AnswerverifiedShow Answer

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Correct AnswerverifiedShow Answer

Since 1850, the

Correct AnswerverifiedShow Answer

If a country's replacement rate is two births per woman and its total fertility rate is four births per woman, the country's population will decline.

Correct AnswerverifiedShow Answer

Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ and the current market price is $5 per ton. If Dave offered to sell his ITQ to Sue for $2,000, he and Sue would

Correct AnswerverifiedShow Answer

In 2015, about what percentage of the world's land area was forested?

Correct AnswerverifiedB

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True

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C

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B