Question 1

In 2014, the primary sources of U.S.electricity generation, in order from largest to smallest, were

Accepted Answer

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

Question 2

If predictions that the world will run out of oil or petroleum in the next century become true, then

Accepted Answer

A) the world would run out of energy. 
B) alternative sources would become viable. 
C) economies would grind to a halt. 
D) population will decline due to starvation. 
A) the world would run out of energy. 
B) alternative sources would become viable. 
C) economies would grind to a halt. 
D) population will decline due to starvation.

Question 3

In the case of extraction of a nonrenewable resource, when user costs increase, 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 4

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Higher user costs imply that a resource should be extracted more quickly.

Accepted Answer

A) True 
 B)False

Question 7

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

Accepted Answer

A) True 
 B)False

Question 8

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Accepted Answer

A) True 
 B)False

Question 9

In time-value of money analysis, a decrease in interest rates

Accepted Answer

A) raises the present value of a future amount. 
B) lowers the present value of a future amount. 
C) raises the future value of a present amount. 
D) has no effect on present or future amount. 
A) raises the present value of a future amount. 
B) lowers the present value of a future amount. 
C) raises the future value of a present amount. 
D) has no effect on present or future amount.

Question 10

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil) when oil prices reach or more per barrel.

Accepted Answer

A) $60 
B) $80 
C) $100 
D) $120 
A) $60 
B) $80 
C) $100 
D) $120

Question 11

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A) solar power 
B) coal 
C) oceans 
D) aquifers 
A) solar power 
B) coal 
C) oceans 
D) aquifers

Question 12

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

Accepted Answer

A) Japan 
B) China 
C) France 
D) the United States 
A) Japan 
B) China 
C) France 
D) the United States

Question 13

Higher interest rates will, all else equal,

Accepted Answer

A) increase the extraction cost of a resource. 
B) increase the user cost of extracting a resource. 
C) reduce the user cost of extracting a resource. 
D) have no impact on either the user cost or extraction cost of a resource. 
A) increase the extraction cost of a resource. 
B) increase the user cost of extracting a resource. 
C) reduce the user cost of extracting a resource. 
D) have no impact on either the user cost or extraction cost of a resource.

Question 14

(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 
A) Russia 
B) France 
C) Italy 
D) all of these nations

Question 15

One of the world's greatest economic challenges over the coming decades will be to supply the resources that will be demanded as living standards in poorer countries rise to rich-country standards.

Accepted Answer

A) True 
 B)False

Question 16

Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today.

Accepted Answer

A) True 
 B)False

Question 17

The real cost of buying a market basket of 25 important commodities in 2015 compared to the cost in the 1845-1850 base period in The Economist's Commodity Price Index is

Accepted Answer

A) higher by about 100 percent. 
B) about the same or equal. 
C) lower by about 65 percent. 
D) higher by about 50 percent. 
A) higher by about 100 percent. 
B) about the same or equal. 
C) lower by about 65 percent. 
D) higher by about 50 percent.

Question 18

One of the worst systems for encouraging conservation of fisheries is the combination of total allowable catch (TAC) with individual transferable quota
(ITQ).

Accepted Answer

A) True 
 B)False

Question 19

A mining company's extraction costs curve is

Accepted Answer

A) upward-sloping because the more the company extracts, the more its marginal extraction costs increase. 
B) upward-sloping because the more the company extracts, the more its marginal extraction costs decrease. 
C) downward-sloping because the more the company extracts, the more its marginal extraction costs increase. 
D) downward-sloping because the more the company extracts, the more its marginal extraction costs decrease. 
A) upward-sloping because the more the company extracts, the more its marginal extraction costs increase. 
B) upward-sloping because the more the company extracts, the more its marginal extraction costs decrease. 
C) downward-sloping because the more the company extracts, the more its marginal extraction costs increase. 
D) downward-sloping because the more the company extracts, the more its marginal extraction costs decrease.

Question 20

Most developed countries have fertility rates less than 2.1.

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

In 2014, the primary sources of U.S.electricity generation, in order from largest to smallest, were

If predictions that the world will run out of oil or petroleum in the next century become true, then

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

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Higher user costs imply that a resource should be extracted more quickly.

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

In time-value of money analysis, a decrease in interest rates

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil) when oil prices reach or more per barrel.

Which of the following is considered a nonrenewable natural resource?

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

Higher interest rates will, all else equal,

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

One of the world's greatest economic challenges over the coming decades will be to supply the resources that will be demanded as living standards in poorer countries rise to rich-country standards.

Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today.

The real cost of buying a market basket of 25 important commodities in 2015 compared to the cost in the 1845-1850 base period in The Economist's Commodity Price Index is

One of the worst systems for encouraging conservation of fisheries is the combination of total allowable catch (TAC) with individual transferable quota (ITQ).

A mining company's extraction costs curve is

Most developed countries have fertility rates less than 2.1.

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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