Question 1

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A)   solar power
B)   coal
C)   oceans
D)   aquifersE) A) and B)
F) A) and C)

Question 2

The United States is in imminent danger of running out of energy.

Accepted Answer

A) True 
 B)False

Question 3

About one-half of U.S. electricity is generated using petroleum.

Accepted Answer

A) True 
 B)False

Question 4

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Accepted Answer

A)   not changed.
B)   more than doubled.
C)   risen about 50 percent.
D)   risen more than threefold.E) A) and D)
F) A) and C)

Question 5

Elephant populations have

Accepted Answer

A)   expanded everywhere because of state control of elephant populations.
B)   declined in countries where they are owned by local villages and expanded where they are owned by the state.
C)   expanded in countries where they are owned by local villages and declined where they are owned by the state.
D)   declined everywhere, regardless of whether property rights over elephants are recognized.E) B) and D)
F) A) and B)

Question 6

What was the largest U.S. fishery, in dollar terms, in 2014?

Accepted Answer

A)   Pacific halibut
B)   sea scallop
C)   walleye pollock
D)   lobsterE) A) and B)
F) B) and C)

Question 7

Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $20; Oli's cost per ton is $28. If the market price of Pacific halibut is $40 per ton, what is the maximum amount Melanie would be willing to pay per ton for Oli's ITQs?

Accepted Answer

A)   $20
B)   $28
C)   $40
D)   $12E) A) and B)
F) None of the above

Question 8

The higher a resource's current price, the more extraction should be delayed to a later period.

Accepted Answer

A) True 
 B)False

Question 9

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Accepted Answer

A) True 
 B)False

Question 10

A plot of the Environment Performance Index (EPI)  scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Accepted Answer

A)   GDP rises, EPI score falls.
B)   GDP rises, EPI score rises.
C)   GDP falls, EPI score rises.
D)   GDP falls, EPI score stays relatively constant.E) A) and C)
F) All of the above

Question 11

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Accepted Answer

A) True 
 B)False

Question 12

Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. If no explicit property right is given over the forest land, then

Accepted Answer

A)   a property right will be established when trees are cut down and brought to market.
B)   there is no property right over the harvested timber.
C)   Alex and Ben will likely work out an agreement on harvesting and replanting the land.
D)   that implies that government owns and regulates its use.E) C) and D)
F) A) and D)

Question 13

A fishery is a stock of fish or other marine animal thought of as a logically distinct group and usually identified by its location and species.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

Malthus argued that any increase in living standards would cause a decrease in population growth.

Accepted Answer

A) True 
 B)False

Question 16

The amount of land covered by forests is

Accepted Answer

A)   declining in all nations.
B)   increasing in all nations.
C)   increasing in places like the United States and Western Europe, while declining in countries in South America.
D)   declining in places like the United States and Western Europe, while increasing in countries in South America.E) All of the above
F) B) and C)

Question 17

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 minimum amount per ton that Kara would have to offer Kyle to convince him to sell Kara his ITQs?

Accepted Answer

A)   $3
B)   $4
C)   $5
D)   $7E) C) and D)
F) All of the above

Question 18

Forestry companies typically harvest and replant an area when trees are

Accepted Answer

A)   very young and growing slowly.
B)   middle aged and growing rapidly.
C)   near the end of their rapid-growth period.
D)   extremely old and about to die anyway.E) A) and C)
F) B) and D)

Question 19

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Accepted Answer

A)   reduce extraction in the present.
B)   increase the current rate of extraction.
C)   invest in less extraction equipment.
D)   hire more workers to support current production.E) B) and D)
F) A) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

What was the largest U.S. fishery, in dollar terms, in 2014?

Correct Answer
verified

Malthus argued that any increase in living standards would cause a decrease in population growth.

Correct Answer
verified

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Correct Answer
verified

About one-half of U.S. electricity is generated using petroleum.

Correct Answer
verified

Forestry companies typically harvest and replant an area when trees are

Correct Answer
verified

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Correct Answer
verified

Elephant populations have

Correct Answer
verified

The United States is in imminent danger of running out of energy.

Correct Answer
verified

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Correct Answer
verified

The higher a resource's current price, the more extraction should be delayed to a later period.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A fishery is a stock of fish or other marine animal thought of as a logically distinct group and usually identified by its location and species.

Correct Answer
verified

The amount of land covered by forests is

Correct Answer
verified

Which of the following is considered a nonrenewable natural resource?

Correct Answer
verified

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

What was the largest U.S. fishery, in dollar terms, in 2014?

Correct AnswerverifiedShow Answer

Malthus argued that any increase in living standards would cause a decrease in population growth.

Correct AnswerverifiedShow Answer

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Correct AnswerverifiedShow Answer

About one-half of U.S. electricity is generated using petroleum.

Correct AnswerverifiedShow Answer

Forestry companies typically harvest and replant an area when trees are

Correct AnswerverifiedShow Answer

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Correct AnswerverifiedShow Answer

Elephant populations have

Correct AnswerverifiedShow Answer

The United States is in imminent danger of running out of energy.

Correct AnswerverifiedShow Answer

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Correct AnswerverifiedShow Answer

The higher a resource's current price, the more extraction should be delayed to a later period.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A fishery is a stock of fish or other marine animal thought of as a logically distinct group and usually identified by its location and species.

Correct AnswerverifiedShow Answer

The amount of land covered by forests is

Correct AnswerverifiedShow Answer

Which of the following is considered a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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