Question 1

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 C)
F) A) and B)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

(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.E) All of the above
F) None of the above

Question 4

In which step of the demographic transition would we expect population to grow the fastest?

Accepted Answer

A)   Step 1
B)   Step 2
C)   Step 3
D)   There is no step that would be expected to consistently yield faster population growth.E) None of the above
F) A) and D)

Question 5

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

Question 6

In time-value of money analysis, a decrease in interest rates

Accepted Answer

A)   raises the present value of a future amount.
B)   lowers the present value of a future amount.
C)   raises the future value of a present amount.
D)   has no effect on present or future amount.E) A) and B)
F) All of the above

Question 7

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 8

The key demand-side factors that cause the depletion of finite natural resources are

Accepted Answer

A)   population and productivity.
B)   productivity and per capita consumption.
C)   per capita consumption and efficiency.
D)   population and per capita consumption.E) B) and C)
F) A) and D)

Question 9

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) B) and C)

Question 10

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 11

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Accepted Answer

A)   operate all plants at full capacity.
B)   operate all plants at less than full capacity.
C)   produce at several plants with different operating costs.
D)   produce at one plant with the lowest possible operating cost.E) A) and D)
F) A) and C)

Question 12

(Consider This)  The tragedy of the commons occurs primarily

Accepted Answer

A)   where government subsidies are present.
B)   when incentives to preserve are strongest.
C)   where property rights are lacking.
D)   on privately held lands.E) A) and B)
F) A) and C)

Question 13

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Accepted Answer

A) True 
 B)False

Question 14

With modernization, the world's population will continue to decline even as many countries experience declining death rates.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   a reduction in extraction costs
B)   a reduction in user costs
C)   a reduction in total costs
D)   a reduction in the price of the resourceE) A) and C)
F) None of the above

Question 16

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Accepted Answer

A) True 
 B)False

Question 17

Extraction costs of a nonrenewable resource include the

Accepted Answer

A)   cost of removal from the ground only.
B)   cost of removal from the ground plus the cost of preparation for sale.
C)   cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future.
D)   cost of removal from the ground plus replanting costs.E) None of the above
F) A) and B)

Question 18

Fish in the open ocean are protected by strong property rights.

Accepted Answer

A) True 
 B)False

Question 19

The period since the Industrial Revolution has been extraordinary because, despite unprecedented

Accepted Answer

A)   population growth, there has been a substantial increase in the standard of living in industrialized nations.
B)   population growth, there has been a substantial decrease in the productivity in industrialized nations.
C)   declines in economic efficiency, there has been a rise in the standard of living in industrialized nations.
D)   declines in economic efficiency, there has been a rise in population growth in industrialized nations.E) None of the above
F) B) and C)

Question 20

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

Exam 19: Natural Resource and Energy Economics

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

(Consider This) The tragedy of the commons occurs primarily

Correct AnswerverifiedShow Answer

Extraction costs of a nonrenewable resource include the

Correct AnswerverifiedShow Answer

The key demand-side factors that cause the depletion of finite natural resources are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fish in the open ocean are protected by strong property rights.

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

In which step of the demographic transition would we expect population to grow the fastest?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Correct AnswerverifiedShow Answer

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

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

In time-value of money analysis, a decrease in interest rates

Correct AnswerverifiedShow Answer

The period since the Industrial Revolution has been extraordinary because, despite unprecedented

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

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

With modernization, the world's population will continue to decline even as many countries experience declining death rates.

Correct AnswerverifiedShow Answer

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