Question 1

In the absence of enforceable property rights, there is little incentive to preserve resources for future use.

Accepted Answer

A) True 
 B)False

Question 2

According to U.S.Energy Information Administration data, about what percentage of U.S.electricity was generated by coal-fired plants in 2014?

Accepted Answer

A) 10 percent 
B) 22 percent 
C) 35 percent 
D) 60 percent 
A) 10 percent 
B) 22 percent 
C) 35 percent 
D) 60 percent

Question 3

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.Topic: Natural Resource Economics
Topic: Renewable Resources

Accepted Answer

A) True 
 B)False

Question 4

"Conflict diamonds" refer to the diamonds

Accepted Answer

A) that were stolen by the Nazis in WWII and are now reclaimed by the true owners. 
B) mined by combatants in war zones in Africa. 
C) whose authenticity is contested by experts in the industry. 
D) over which major rivals are heatedly bidding against one another in the auction markets. 
A) that were stolen by the Nazis in WWII and are now reclaimed by the true owners. 
B) mined by combatants in war zones in Africa. 
C) whose authenticity is contested by experts in the industry. 
D) over which major rivals are heatedly bidding against one another in the auction markets.

Question 5

Which of the following explains why commodity prices have 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. 
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.

Question 6

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.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 
A) $20 
B) $28 
C) $40 
D) $12

Question 7

Power plants with the lowest operating costs tend to

Accepted Answer

A) have the lowest fixed costs in terms of construction. 
B) have the highest fixed costs in terms of construction. 
C) operate on the smallest scale of energy production. 
D) generate the cleanest energy. 
A) have the lowest fixed costs in terms of construction. 
B) have the highest fixed costs in terms of construction. 
C) operate on the smallest scale of energy production. 
D) generate the cleanest energy.

Question 8

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 9

Which of the following, in order, describes the three steps of the demographic transition?

Accepted Answer

A) low birthrates and death rates; high birthrates and low death rates; high birthrates and death rates 
B) high birthrates and death rates; low birthrates and high death rates; low birthrates and death rates 
C) high birthrates and low death rates; high birthrates and death rates; low birthrates and death rates 
D) high birthrates and death rates; high birthrates and low death rates; low birthrates and death rates 
A) low birthrates and death rates; high birthrates and low death rates; high birthrates and death rates 
B) high birthrates and death rates; low birthrates and high death rates; low birthrates and death rates 
C) high birthrates and low death rates; high birthrates and death rates; low birthrates and death rates 
D) high birthrates and death rates; high birthrates and low death rates; low birthrates and death rates

Question 10

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

Accepted Answer

A) less than 1 birth per woman per lifetime. 
B) equal to about 1 birth per woman per lifetime. 
C) equal to about 1.5 births per woman per lifetime. 
D) slightly more than 2 births per woman per lifetime. 
A) less than 1 birth per woman per lifetime. 
B) equal to about 1 birth per woman per lifetime. 
C) equal to about 1.5 births per woman per lifetime. 
D) slightly more than 2 births per woman per lifetime.

Question 11

Demographers refer to this as the "demographic transition": The reduction in death rates brought about by rising standards of living "causes a temporary population explosion because parents-initially unaware that such a revolutionary change in death rates has taken place-for a while keep having six or more children-to ensure that at least two will survive to adulthood." For which major industrialized country could this statement be used to explain its current population trend?

Accepted Answer

A) United States 
B) Japan 
C) India 
D) China 
A) United States 
B) Japan 
C) India 
D) China

Question 12

In energy economics, "BTU" stands for

Accepted Answer

A) boiling temperature unit. 
B) base tax utility. 
C) British thermal unit. 
D) base technology utility. 
A) boiling temperature unit. 
B) base tax utility. 
C) British thermal unit. 
D) base technology utility.

Question 13

Which of the following is considered a renewable natural resource?

Accepted Answer

A) natural gas 
B) copper 
C) solar power 
D) coal 
A) natural gas 
B) copper 
C) solar power 
D) coal

Question 14

Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy.

Accepted Answer

A) True 
 B)False

Question 15

An oil company is considering drilling in the Gulf at a current cost of $300,000 with an expected profit of $500,000 in three years.The current market rate is 10 percent.Should the company make the investment?

Accepted Answer

A) Yes, the future value of the profit is greater than the present value of the cost. 
B) No, the future value of the profit is less than the present value of the cost. 
C) Yes, the present value of the profit is greater than the present value of the cost. 
D) No, the present value of the profit is less than the present value of the cost. 
A) Yes, the future value of the profit is greater than the present value of the cost. 
B) No, the future value of the profit is less than the present value of the cost. 
C) Yes, the present value of the profit is greater than the present value of the cost. 
D) No, the present value of the profit is less than the present value of the cost.

Question 16

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

Accepted Answer

A) population in that country to rise over time. 
B) population in that country to fall over time. 
C) the replacement rate to also equal 1.8. 
D) the population to remain stable over time. 
A) population in that country to rise over time. 
B) population in that country to fall over time. 
C) the replacement rate to also equal 1.8. 
D) the population to remain stable over time.

Question 17

An example of a nonrenewable resource would be

Accepted Answer

A) forests. 
B) oceans. 
C) gold ore. 
D) solar energy. 
A) forests. 
B) oceans. 
C) gold ore. 
D) solar energy.

Question 18

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Accepted Answer

A) True 
 B)False

Question 19

Since 1950, the energy efficiency of the U.S.economy in terms of producing goods and services has

Accepted Answer

A) not changed. 
B) more than doubled. 
C) risen about 50 percent. 
D) risen more than threefold. 
A) not changed. 
B) more than doubled. 
C) risen about 50 percent. 
D) risen more than threefold.

Question 20

An oil producer discovers an oil supply in Texas that can be pumped for a profit of $50 per barrel now, $60 per barrel in three years, $80 per barrel in five years, or $90 a barrel in seven years.The current market rate of interest is 3 percent.When should the oil producer extract the oil to obtain the most profit per barrel in present value terms?

Accepted Answer

A) today 
B) three years 
C) five years 
D) seven years 
A) today 
B) three years 
C) five years 
D) seven years

Exam 19: Natural Resource and Energy Economics

In the absence of enforceable property rights, there is little incentive to preserve resources for future use.

According to U.S.Energy Information Administration data, about what percentage of U.S.electricity was generated by coal-fired plants in 2014?

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.Topic: Natural Resource Economics Topic: Renewable Resources

"Conflict diamonds" refer to the diamonds

Which of the following explains why commodity prices have fallen since 1850?

Power plants with the lowest operating costs tend to

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

Which of the following, in order, describes the three steps of the demographic transition?

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

In energy economics, "BTU" stands for

Which of the following is considered a renewable natural resource?

Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy.

An oil company is considering drilling in the Gulf at a current cost of $300,000 with an expected profit of $500,000 in three years.The current market rate is 10 percent.Should the company make the investment?

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

An example of a nonrenewable resource would be

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Since 1950, the energy efficiency of the U.S.economy in terms of producing goods and services has

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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