Question 1

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

Accepted Answer

A) reduce the costs of production to the lowest possible level. 
B) increase the benefits from production to the highest possible level. 
C) weigh the net benefits of current use with the net benefits of future use. 
D) add the net benefits of current use to the net benefits of future use. 
A) reduce the costs of production to the lowest possible level. 
B) increase the benefits from production to the highest possible level. 
C) weigh the net benefits of current use with the net benefits of future use. 
D) add the net benefits of current use to the net benefits of future use.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Property rights over fish in the open ocean exist once the fish are caught.

Accepted Answer

A) True 
 B)False

Question 4

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. 
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.

Question 5

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Accepted Answer

A) Thailand 
B) Puerto Rico 
C) Nigeria 
D) United States 
A) Thailand 
B) Puerto Rico 
C) Nigeria 
D) United States

Question 6

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

Accepted Answer

A) decrease, while the amount of current extraction increases. 
B) decrease, and the amount of current extraction decreases. 
C) increase, and the amount of current extraction increases. 
D) increase, while the amount of current extraction decreases. 
A) decrease, while the amount of current extraction increases. 
B) decrease, and the amount of current extraction decreases. 
C) increase, and the amount of current extraction increases. 
D) increase, while the amount of current extraction decreases.

Question 7

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. 
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.

Question 8

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. 
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.

Question 9

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. 
A) location and size. 
B) location and species. 
C) species and size. 
D) species and market value.

Question 10

Per capita water use in the United States has steadily increased since 1973.

Accepted Answer

A) True 
 B)False

Question 11

In fisheries management, ITQ stands for

Accepted Answer

A) international transferable quota. 
B) individual transferable quota. 
C) international tuna quotas. 
D) individual trolling quotas. 
A) international transferable quota. 
B) individual transferable quota. 
C) international tuna quotas. 
D) individual trolling quotas.

Question 12

The user cost of extracting a nonrenewable resource is

Accepted Answer

A) the sum of the dollar expenditures incurred to extract the resource. 
B) the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C) the selling price of the resource to the companies using it to produce goods and services. 
D) directly proportional to how much of the nonrenewable resource remains. 
A) the sum of the dollar expenditures incurred to extract the resource. 
B) the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C) the selling price of the resource to the companies using it to produce goods and services. 
D) directly proportional to how much of the nonrenewable resource remains.

Question 13

Petroleum is the largest source of electric energy generated in the U.S.

Accepted Answer

A) True 
 B)False

Question 14

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. 
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.

Question 15

According to the concept of demographic transition,

Accepted Answer

A) population growth rates should slow as nations move into the final stage. 
B) population growth rates should rise as nations move into the final stage. 
C) population growth becomes exponential when nations are in the final stage. 
D) population plummets in the transition phase. 
A) population growth rates should slow as nations move into the final stage. 
B) population growth rates should rise as nations move into the final stage. 
C) population growth becomes exponential when nations are in the final stage. 
D) population plummets in the transition phase.

Question 16

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 17

The long-run fall of commodity prices implies that commodity supplies have grown

Accepted Answer

A) faster than the rate of productivity in the economy. 
B) more slowly than total resource consumption. 
C) faster than total resource consumption. 
D) more slowly than the inflation rate. 
A) faster than the rate of productivity in the economy. 
B) more slowly than total resource consumption. 
C) faster than total resource consumption. 
D) more slowly than the inflation rate.

Question 18

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Accepted Answer

A) It will be overlogged by loggers. 
B) It will be underlogged by loggers. 
C) It will be preserved for future use by loggers. 
D) It will become the common property of the government. 
A) It will be overlogged by loggers. 
B) It will be underlogged by loggers. 
C) It will be preserved for future use by loggers. 
D) It will become the common property of the government.

Question 19

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

Accepted Answer

A) the United States and Tanzania. 
B) Switzerland and Latvia. 
C) New Zealand and Sweden. 
D) Brazil and Australia.Topic: Resource Supplies: Doom or Boom? 
A) the United States and Tanzania. 
B) Switzerland and Latvia. 
C) New Zealand and Sweden. 
D) Brazil and Australia.Topic: Resource Supplies: Doom or Boom?

Question 20

Demographers expect world population to peak and then decline in the twenty-first century.

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

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

Property rights over fish in the open ocean exist once the fish are caught.

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

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

Elephant populations have

A fishery is typically identified by

Per capita water use in the United States has steadily increased since 1973.

In fisheries management, ITQ stands for

The user cost of extracting a nonrenewable resource is

Petroleum is the largest source of electric energy generated in the U.S.

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

According to the concept of demographic transition,

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

The long-run fall of commodity prices implies that commodity supplies have grown

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

Demographers expect world population to peak and then decline in the twenty-first century.

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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