Question 1

Renewable energy sources account for about 50 percent of U.S.electricity generation.

Accepted Answer

A) True 
 B)False

Question 2

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. Refer to the information given.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)   $12.E) A) and C)
F) B) and C)

Question 3

Why have commodity prices 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 D)
F) A) and C)

Question 4

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

Accepted Answer

A)   Italy.
B)   United States.
C)   China.
D)   All of these nations.E) B) and D)
F) A) and B)

Question 5

Individual transferable quotas (ITQs) :

Accepted Answer

A)   promote efficiency and limit catches.
B)   promote efficiency in production but still lead to overfishing.
C)   limit catches but encourage production cost increases that are inefficient.
D)   have failed to limit catches or promote efficiency.E) A) and D)
F) B) and D)

Question 6

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.If property rights are poorly enforced or nonexistent:

Accepted Answer

A)   Ben will choose to harvest as quickly as possible,but Alex will choose to harvest more slowly and replant.
B)   both will harvest trees as quickly as possible,before the other one does.
C)   both now have an incentive to harvest and replant in a sustainable manner.
D)   we would expect them to form an agreement on harvesting and replanting.E) B) and D)
F) C) and D)

Question 7

Global resource demand has:

Accepted Answer

A)   remained relatively constant because increases in population have been offset by declining consumption per person.
B)   declined because of technological progress.
C)   remained constant because population growth and increased consumption per person have been offset by technological progress.
D)   increased because population growth and increased consumption per person have more than offset reduced demand due to technological progress.E) A) and D)
F) A) and C)

Question 8

Which of the following is considered a renewable natural resource?

Accepted Answer

A)   Natural gas.
B)   Copper.
C)   Solar power.
D)   Coal.E) None of the above
F) A) and B)

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Accepted Answer

A)   coal,natural gas,nuclear,and hydropower.
B)   coal,hydropower,nuclear,and renewables (wind and solar) .
C)   natural gas,coal,hydropower,and petroleum.
D)   hydropower,nuclear,coal,and petroleum.E) C) and D)
F) B) and D)

Question 12

The table below shows the quantity of gold bars (Qb) in thousands,the extraction cost for each thousand bars (in millions of dollars) ,and the user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year.   Quantity of Gold Bars  (in thousands)   Extraction Cost  (in millions of dollars)   User Cost  (in millions of dollars)  0$10$511552205325543055355\begin{array} { c c c } \begin{array} { c } 	ext { Quantity of Gold Bars } \	ext { (in thousands)  }\\hline\end{array} & \begin{array} { c } 	ext { Extraction Cost } \	ext { (in millions of dollars)  }\\hline\end{array} & \begin{array} { c } 	ext { User Cost } \	ext { (in millions of dollars)  }\\hline\end{array} \0 & \$ 10 & \$ 5 \1 & 15 & 5 \2 & 20 & 5 \3 & 25 & 5 \4 & 30 & 5 \5 & 35 & 5\end{array} Quantity of Gold Bars  (in thousands)  ​​012345​ Extraction Cost  (in millions of dollars)  ​​$101520253035​ User Cost  (in millions of dollars)  ​​$555555​  Refer to the data.If the price of a bar of gold is $30,000 this year,how many bars (in thousands) should OZ extract and sell?

Accepted Answer

A)   2.
B)   3.
C)   4.
D)   5. E) B) and D)
F) B) and C)

Question 13

Productive inputs that are actually or virtually fixed in supply are known as:

Accepted Answer

A)   renewable natural resources.
B)   natural capital.
C)   nonrenewable natural resources.
D)   alternative fuels.E) All of the above
F) B) and D)

Question 14

(Consider This) Governments' main economic concern about low birthrates is that:

Accepted Answer

A)   in a few decades there will not be enough working-age adults to support pension responsibilities to retirees.
B)   the smaller population makes the economy more vulnerable to foreign takeover.
C)   a declining population will reduce worker productivity.
D)   smaller populations are more susceptible to epidemics.E) None of the above
F) C) and D)

Question 15

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) A) and B)
F) None of the above

Question 16

Other things equal,ethanol made from corn becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

Accepted Answer

A)   $60
B)   $80
C)   $100
D)   $120E) B) and D)
F) A) and D)

Question 17

A user cost of zero implies that:

Accepted Answer

A)   a firm will extract all of a resource in the present.
B)   a firm will extract resources at a faster rate than if the user cost was positive.
C)   a firm will extract resources at a faster rate than if the user cost was negative.
D)   the price of the resource will not change.E) C) and D)
F) A) and D)

Question 18

The total fertility rate necessary to keep the population constant is approximately equal to:

Accepted Answer

A)   1.0.
B)   1.5.
C)   2.1.
D)   3.0.E) None of the above
F) B) and C)

Question 19

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. Refer to the information given and assume that the market price of Pacific halibut is $40 per ton.If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit of 2,000 tons,their combined profit would be:

Accepted Answer

A)   $28,000.
B)   $32,000.
C)   $30,000.
D)   $54,000.E) None of the above
F) B) and C)

Question 20

The table below shows the quantity of gold bars (Qb) in thousands,the extraction cost for each thousand bars (in millions of dollars) ,and the user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year.   Quantity of Gold Bars  (in thousands)   Extraction Cost  (in millions of dollars)   User Cost  (in millions of dollars)  0$10$511552205325543055355\begin{array} { c c c } \begin{array} { c } 	ext { Quantity of Gold Bars } \	ext { (in thousands)  }\\hline\end{array} & \begin{array} { c } 	ext { Extraction Cost } \	ext { (in millions of dollars)  }\\hline\end{array} & \begin{array} { c } 	ext { User Cost } \	ext { (in millions of dollars)  }\\hline\end{array} \0 & \$ 10 & \$ 5 \1 & 15 & 5 \2 & 20 & 5 \3 & 25 & 5 \4 & 30 & 5 \5 & 35 & 5\end{array} Quantity of Gold Bars  (in thousands)  ​​012345​ Extraction Cost  (in millions of dollars)  ​​$101520253035​ User Cost  (in millions of dollars)  ​​$555555​  Refer to the data.If the current price of a bar of gold is $25,000,how many bars (in thousands) should OZ extract and sell this year in order to maximize profits?

Accepted Answer

A)   1.
B)   2.
C)   3.
D)   4. E) A) and B)
F) A) and C)

Exam 18: Natural Resource and Energy Economics

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

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

Correct Answer
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Why have commodity prices fallen since 1850?

Correct Answer
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The total fertility rate necessary to keep the population constant is approximately equal to:

Correct Answer
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(Consider This) Governments' main economic concern about low birthrates is that:

Correct Answer
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Correct Answer
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Correct Answer
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Other things equal,ethanol made from corn becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

Correct Answer
verified

Productive inputs that are actually or virtually fixed in supply are known as:

Correct Answer
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A user cost of zero implies that:

Correct Answer
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Which of the following is considered a renewable natural resource?

Correct Answer
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Correct Answer
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In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Correct Answer
verified

Renewable energy sources account for about 50 percent of U.S.electricity generation.

Correct Answer
verified

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

Correct Answer
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Individual transferable quotas (ITQs) :

Correct Answer
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Correct Answer
verified

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

Correct Answer
verified

Global resource demand has:

Correct Answer
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Correct Answer
verified

Exam 18: Natural Resource and Energy Economics

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why have commodity prices fallen since 1850?

Correct AnswerverifiedShow Answer

The total fertility rate necessary to keep the population constant is approximately equal to:

Correct AnswerverifiedShow Answer

(Consider This) Governments' main economic concern about low birthrates is that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Other things equal,ethanol made from corn becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

Correct AnswerverifiedShow Answer

Productive inputs that are actually or virtually fixed in supply are known as:

Correct AnswerverifiedShow Answer

A user cost of zero implies that:

Correct AnswerverifiedShow Answer

Which of the following is considered a renewable natural resource?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Correct AnswerverifiedShow Answer

Renewable energy sources account for about 50 percent of U.S.electricity generation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Individual transferable quotas (ITQs) :

Correct AnswerverifiedShow Answer

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

Global resource demand has:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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