Question 1

If property rights are weak or uncertain,resource extraction will tend to:

Accepted Answer

A)   occur faster than the rate that would maximize the long-run stream of profits.
B)   occur slower than the rate that would maximize the long-run stream of profits.
C)   occur at the rate that would maximize the long-run stream of profits.
D)   stop.E) B) and C)
F) B) and D)

Question 2

To achieve economic efficiency in energy use,an economy:

Accepted Answer

A)   often uses a variety of energy sources.
B)   must use the single energy source in which it can achieve economies of scale.
C)   should use all energy sources in equal proportion.
D)   should only use domestically produced energy.E) C) and D)
F) A) and C)

Question 3

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) All of the above

Question 4

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. Refer to the information given.If the market price of sockeye salmon is $15 per ton,what is the maximum amount Kara would be willing to pay per ton for Kyle's ITQs?

Accepted Answer

A)   $3.
B)   $7.
C)   $8.
D)   $15.E) None of the above
F) B) and C)

Question 5

It is generally easier to prevent deforestation than fishery collapse because:

Accepted Answer

A)   it is easier to establish and enforce property rights on national lands than in international waters.
B)   there is greater incentive to have sustainable forests than sustainable fisheries.
C)   the demand for wood products has dropped significantly while the demand for fish has grown significantly.
D)   all of these.E) All of the above
F) A) and B)

Question 6

Commodity prices are relatively stable from year to year.

Accepted Answer

A) True 
 B)False

Question 7

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.Suppose that a new government regulation is going to shut down OZ's mining operation one year from now.Assuming that all gold extracted is sold in the same year (cannot be stockpiled for later sale) ,how will the regulation affect the user cost?

Accepted Answer

A)   It will have no effect on the user cost.
B)   The effect on the user cost cannot be determined.
C)   The user cost will rise because the rate of extraction will rise.
D)   The user cost will become zero because they will not be able to extract in the future. E) B) and C)
F) None of the above

Question 8

Which of the following policies has succeeded in reducing fishery catch sizes?

Accepted Answer

A)   Limiting the length of the catch season.
B)   Limiting the number of boats allowed in a given area.
C)   Limiting catch size (TA
C)  .
D)   All of these.E) None of the above
F) A) and B)

Question 9

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

Accepted Answer

A)   Adam Smith.
B)   Thomas Malthus.
C)   John Maynard Keynes.
D)   Alfred Marshall.E) A) and D)
F) B) and C)

Question 10

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 minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs?

Accepted Answer

A)   $8.
B)   $10.
C)   $20.
D)   $12.E) A) and C)
F) None of the above

Question 11

A fishery is typically identified by:

Accepted Answer

A)   location and size.
B)   location and species.
C)   species and size.
D)   species and market value.E) A) and B)
F) None of the above

Question 12

The user cost of a resource is the market price paid by the buyer of the resource.

Accepted Answer

A) True 
 B)False

Question 13

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Accepted Answer

A) True 
 B)False

Question 14

What was the largest U.S.fishery,in dollar terms,in 2010?

Accepted Answer

A)   Pacific halibut.
B)   Lobster.
C)   Walleye pollock.
D)   Sea scallop.E) All of the above
F) None of the above

Question 15

(Last Word) According to Yale University's Environmental Performance Index (EPI) :

Accepted Answer

A)   countries with lower GDP per person tend to have healthier environments.
B)   countries with higher GDP per person tend to have healthier environments.
C)   there is no correlation between GDP per person and environmental quality.
D)   growth in GDP per person initially improves environmental quality and then gradually reduces it.E) All of the above
F) A) and D)

Question 16

Resource demand has grown over time:

Accepted Answer

A)   because of population growth only.
B)   because of increased consumption per person only.
C)   because of both increased population and greater consumption per person.
D)   despite decreases in population and consumption per person.E) B) and D)
F) C) and D)

Question 17

Property rights for fish from the open ocean:

Accepted Answer

A)   do not exist.
B)   are established by the United Nations.
C)   exist once the fish are sold at market.
D)   exist once the fish are caught.E) A) and D)
F) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 18: Natural Resource and Energy Economics

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

Correct Answer
verified

What was the largest U.S.fishery,in dollar terms,in 2010?

Correct Answer
verified

Commodity prices are relatively stable from year to year.

Correct Answer
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Correct Answer
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Resource demand has grown over time:

Correct Answer
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The user cost of a resource is the market price paid by the buyer of the resource.

Correct Answer
verified

Property rights for fish from the open ocean:

Correct Answer
verified

To achieve economic efficiency in energy use,an economy:

Correct Answer
verified

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Correct Answer
verified

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Correct Answer
verified

(Last Word) According to Yale University's Environmental Performance Index (EPI) :

Correct Answer
verified

A fishery is typically identified by:

Correct Answer
verified

It is generally easier to prevent deforestation than fishery collapse because:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Which of the following policies has succeeded in reducing fishery catch sizes?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

If property rights are weak or uncertain,resource extraction will tend to:

Correct Answer
verified

Exam 18: Natural Resource and Energy Economics

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

Correct AnswerverifiedShow Answer

What was the largest U.S.fishery,in dollar terms,in 2010?

Correct AnswerverifiedShow Answer

Commodity prices are relatively stable from year to year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Resource demand has grown over time:

Correct AnswerverifiedShow Answer

The user cost of a resource is the market price paid by the buyer of the resource.

Correct AnswerverifiedShow Answer

Property rights for fish from the open ocean:

Correct AnswerverifiedShow Answer

To achieve economic efficiency in energy use,an economy:

Correct AnswerverifiedShow Answer

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Correct AnswerverifiedShow Answer

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Correct AnswerverifiedShow Answer

(Last Word) According to Yale University's Environmental Performance Index (EPI) :

Correct AnswerverifiedShow Answer

A fishery is typically identified by:

Correct AnswerverifiedShow Answer

It is generally easier to prevent deforestation than fishery collapse because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following policies has succeeded in reducing fishery catch sizes?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If property rights are weak or uncertain,resource extraction will tend to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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