Question 1

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Accepted Answer

A)   different nations have different ethical views regarding treatment of the environment.
B)   nations with increasing forest cover have poorly enforced or nonexistent property rights.
C)   nations with declining forest cover treat forests as private property or strictly regulated government property.
D)   nations with increasing forest cover treat forests as private property or strictly regulated government property.E) C) and D)
F) B) and C)

Question 2

Unless people can benefit from conservation,there is a temptation to:

Accepted Answer

A)   delay resource extraction as long as possible.
B)   extract and use resources at a constant rate.
C)   extract and use resources as quickly as possible.
D)   ban the extraction of nonrenewable resources.E) B) and C)
F) A) and C)

Question 3

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 4

The optimal extraction level in the present for a nonrenewable resource is:

Accepted Answer

A)   zero.
B)   where the market price of the resource equals the extraction cost of the last unit.
C)   where the market price of the resource equals the extraction cost of the last unit plus the user cost of the last unit.
D)   where the extraction cost of the last unit equals the user cost of the last unit.E) B) and C)
F) B) and D)

Question 5

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Accepted Answer

A)   Russia.
B)   France.
C)   Italy.
D)   All of these nations.E) A) and C)
F) B) and D)

Question 6

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 7

Relative to 1800,the living standard of the average person today in the United States is about _____ times higher.

Accepted Answer

A)   5
B)   12
C)   20
D)   42E) A) and C)
F) C) and D)

Question 8

World commodity prices over the past 150 years have:

Accepted Answer

A)   steadily decreased in both the short run and long run.
B)   decreased in the long run despite occasional short-run increases.
C)   remained constant in the long run despite occasional short-run fluctuations.
D)   steadily increased in both the short run and long run.E) None of the above
F) B) and C)

Question 9

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Accepted Answer

A)   have been decimated as villagers try to maximize short-run profit.
B)   have grown as villagers have protected the elephants to support their tourist industry.
C)   have grown exponentially,with adverse environmental impacts.
D)   are in serious decline as ivory prices have risen.E) None of the above
F) A) and B)

Question 10

Alternative fuels become more economically viable as:

Accepted Answer

A)   the demand for oil decreases.
B)   subsidies for alternative fuels are removed.
C)   oil exploration and drilling technology improve.
D)   the price of oil rises.E) All of the above
F) A) and C)

Question 11

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. Refer to the information given.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)   Ben is given sole ownership of the property.E) A) and B)
F) None of the above

Question 12

Which of the following,in order,describes the three steps of the demographic transition?

Accepted Answer

A)   Low birthrates and death rates;high birthrates and low death rates;high birthrates and death rates.
B)   High birthrates and death rates;low birthrates and high death rates;low birthrates and death rates.
C)   High birthrates and low death rates;high birthrates and death rates;low birthrates and death rates.
D)   High birthrates and death rates;high birthrates and low death rates;low birthrates and death rates.E) All of the above
F) C) and D)

Question 13

ITQs generate the most efficient use of resources when everyone keeps and fills their own quotas.

Accepted Answer

A) True 
 B)False

Question 14

What is the relationship between living standards and birthrates?

Accepted Answer

A)   The relationship is negative at low levels of income but becomes increasingly positive as incomes rise.
B)   They are unrelated.
C)   The relationship is positive (directly related) .
D)   The relationship is negative (inversely related) .E) All of the above
F) A) and D)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A fishery collapse:

Accepted Answer

A)   necessarily happens when harvesting rates increase.
B)   necessarily happens when reproduction rates fall.
C)   occurs when harvesting outpaces reproduction for an extended period.
D)   is irreversible.E) All of the above
F) B) and C)

Question 17

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Accepted Answer

A) True 
 B)False

Question 20

Increases in U.S.living standards have matched increases in per capita energy use.

Accepted Answer

A) True 
 B)False

Exam 18: Natural Resource and Energy Economics

What is the relationship between living standards and birthrates?

Correct Answer
verified

A fishery collapse:

Correct Answer
verified

Correct Answer
verified

Unless people can benefit from conservation,there is a temptation to:

Correct Answer
verified

Extraction costs of a nonrenewable resource include the:

Correct Answer
verified

Increases in U.S.living standards have matched increases in per capita energy use.

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

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Correct Answer
verified

World commodity prices over the past 150 years have:

Correct Answer
verified

Alternative fuels become more economically viable as:

Correct Answer
verified

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Correct Answer
verified

Relative to 1800,the living standard of the average person today in the United States is about _____ times higher.

Correct Answer
verified

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Correct Answer
verified

The optimal extraction level in the present for a nonrenewable resource is:

Correct Answer
verified

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Correct Answer
verified

Which of the following,in order,describes the three steps of the demographic transition?

Correct Answer
verified

ITQs generate the most efficient use of resources when everyone keeps and fills their own quotas.

Correct Answer
verified

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

Correct Answer
verified

In fisheries management,a fishery is defined as:

Correct Answer
verified

TAC policies help reduce overfishing and reduce costs for fishers.

Correct Answer
verified

Exam 18: Natural Resource and Energy Economics

What is the relationship between living standards and birthrates?

Correct AnswerverifiedShow Answer

A fishery collapse:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unless people can benefit from conservation,there is a temptation to:

Correct AnswerverifiedShow Answer

Extraction costs of a nonrenewable resource include the:

Correct AnswerverifiedShow Answer

Increases in U.S.living standards have matched increases in per capita energy use.

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

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Correct AnswerverifiedShow Answer

World commodity prices over the past 150 years have:

Correct AnswerverifiedShow Answer

Alternative fuels become more economically viable as:

Correct AnswerverifiedShow Answer

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Correct AnswerverifiedShow Answer

Relative to 1800,the living standard of the average person today in the United States is about _____ times higher.

Correct AnswerverifiedShow Answer

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Correct AnswerverifiedShow Answer

The optimal extraction level in the present for a nonrenewable resource is:

Correct AnswerverifiedShow Answer

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Correct AnswerverifiedShow Answer

Which of the following,in order,describes the three steps of the demographic transition?

Correct AnswerverifiedShow Answer

ITQs generate the most efficient use of resources when everyone keeps and fills their own quotas.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In fisheries management,a fishery is defined as:

Correct AnswerverifiedShow Answer

TAC policies help reduce overfishing and reduce costs for fishers.

Correct AnswerverifiedShow Answer

Correct Answer
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