Question 1

(Consider This) Which of the following must occur for wind and solar power to displace coal and gas?

Accepted Answer

A) Wind and solar producers must reduce the marginal cost of energy storage to below the marginal cost of using coal and gas. 
B) Government must continue to subsidize wind and solar power and heavily tax energy generated using coal and gas. 
C) Wind and solar producers must improve the ability of turbines and solar panels to generate power. 
D) Government must require that all wind and solar power plants be located in windy and sunny places, respectively. 
A) Wind and solar producers must reduce the marginal cost of energy storage to below the marginal cost of using coal and gas. 
B) Government must continue to subsidize wind and solar power and heavily tax energy generated using coal and gas. 
C) Wind and solar producers must improve the ability of turbines and solar panels to generate power. 
D) Government must require that all wind and solar power plants be located in windy and sunny places, respectively. A

Question 2

If the world runs out of oil, it will also run out of energy.

Accepted Answer

A) True 
 B)False  False

Question 3

Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago.

Accepted Answer

A) True 
 B)False  True

Question 4

Studies by economists indicate that economic growth and rising living standards are good for the environment because, as societies get richer, they tend to spend more on things that improve environmental quality.

Accepted Answer

A) True 
 B)False

Question 5

Over the past two decades, total and per capita water use in the United States have

Accepted Answer

A) both increased. 
B) leveled off and fallen, respectively. 
C) fallen and leveled off, respectively. 
D) increased and fallen, respectively. 
A) both increased. 
B) leveled off and fallen, respectively. 
C) fallen and leveled off, respectively. 
D) increased and fallen, respectively.

Question 6

Which of the following is not one of the points made in "Tragedy of the Commons"?

Accepted Answer

A) Individual property rights play a crucial role in resource preservation. 
B) Common property will tend to be overexploited. 
C) Common property makes its users try to use as much as possible and as soon as possible. 
D) Individual property rights tend to be tragically abused by the owners. 
A) Individual property rights play a crucial role in resource preservation. 
B) Common property will tend to be overexploited. 
C) Common property makes its users try to use as much as possible and as soon as possible. 
D) Individual property rights tend to be tragically abused by the owners.

Question 7

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having

Accepted Answer

A) high rates of inflation. 
B) high rates of unemployment. 
C) too many soldiers for national defense. 
D) too few workers to support social programs. 
A) high rates of inflation. 
B) high rates of unemployment. 
C) too many soldiers for national defense. 
D) too few workers to support social programs.

Question 8

Energy efficiency requires that we employ

Accepted Answer

A) only the lowest-cost energy inputs. 
B) only domestic energy sources. 
C) a mix of energy inputs, some of which are more expensive than others. 
D) imported energy inputs and save domestic resources for future use. 
A) only the lowest-cost energy inputs. 
B) only domestic energy sources. 
C) a mix of energy inputs, some of which are more expensive than others. 
D) imported energy inputs and save domestic resources for future use.

Question 9

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach or more per barrel.

Accepted Answer

A) $80 
B) $60 
C) $50 
D) $40 
A) $80 
B) $60 
C) $50 
D) $40

Question 10

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. 
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.

Question 11

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 
A) Adam Smith 
B) Thomas Malthus 
C) John Maynard Keynes 
D) Alfred Marshall

Question 12

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

Accepted Answer

A) True 
 B)False

Question 13

Economists widely fear that the world will run out of energy in the next century.

Accepted Answer

A) True 
 B)False

Question 14

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 the other possible answers are correct. 
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 the other possible answers are correct.

Question 15

Consider an oil company that can pump oil from a reserve either this year or next year.As expected future profits decrease, the extraction quantity this year

Accepted Answer

A) increases due to a higher user cost. 
B) increases due to a lower user cost. 
C) decreases due to a higher user cost. 
D) decreases due to a lower user cost. 
A) increases due to a higher user cost. 
B) increases due to a lower user cost. 
C) decreases due to a higher user cost. 
D) decreases due to a lower user cost.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

(Last Word) Most economists view economic growth as

Accepted Answer

A) good for the environment because richer economies spend more on environmental protection. 
B) bad for the environment because richer economies extract resources at a faster rate. 
C) good for the environment because richer economies produce fewer chemicals. 
D) bad for the environment because people in richer economies tend to care less about the environment. 
A) good for the environment because richer economies spend more on environmental protection. 
B) bad for the environment because richer economies extract resources at a faster rate. 
C) good for the environment because richer economies produce fewer chemicals. 
D) bad for the environment because people in richer economies tend to care less about the environment.

Question 18

The average person in the United States generates about 10 pounds of trash per day.

Accepted Answer

A) True 
 B)False

Question 19

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. 
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.

Question 20

Renewable natural resources can never be exhausted.

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

(Consider This) Which of the following must occur for wind and solar power to displace coal and gas?

If the world runs out of oil, it will also run out of energy.

Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago.

Studies by economists indicate that economic growth and rising living standards are good for the environment because, as societies get richer, they tend to spend more on things that improve environmental quality.

Over the past two decades, total and per capita water use in the United States have

Which of the following is not one of the points made in "Tragedy of the Commons"?

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having

Energy efficiency requires that we employ

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach or more per barrel.

The amount of land covered by forests is

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

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

Economists widely fear that the world will run out of energy in the next century.

It is generally easier to prevent deforestation than fishery collapse because

Consider an oil company that can pump oil from a reserve either this year or next year.As expected future profits decrease, the extraction quantity this year

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

(Last Word) Most economists view economic growth as

The average person in the United States generates about 10 pounds of trash per day.

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

Renewable natural resources can never be exhausted.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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