Question 1

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

Accepted Answer

A) True 
 B)False

Question 2

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

Accepted Answer

A) True 
 B)False

Question 3

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Accepted Answer

A) extraction cost. 
B) future cost. 
C) conservation cost. 
D) user cost. 
A) extraction cost. 
B) future cost. 
C) conservation cost. 
D) user cost.

Question 4

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Accepted Answer

A) a reduction in extraction costs 
B) a reduction in user costs 
C) a reduction in total costs 
D) a reduction in the price of the resource 
A) a reduction in extraction costs 
B) a reduction in user costs 
C) a reduction in total costs 
D) a reduction in the price of the resource

Question 5

Commodity-pricing data from The Economist show a dramatic long-run decline in 25 important real commodity prices from 1850 to 2015.This decline primarily occurred because the

Accepted Answer

A) demand for commodities decreased drastically. 
B) supply of commodities grew faster than demand. 
C) demand for commodities has remained stable over the years. 
D) supply of commodities increased, while demand increased even more. 
A) demand for commodities decreased drastically. 
B) supply of commodities grew faster than demand. 
C) demand for commodities has remained stable over the years. 
D) supply of commodities increased, while demand increased even more.

Question 6

Electricity generating plants with low fixed costs tend to have high operating costs.

Accepted Answer

A) True 
 B)False

Question 7

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. 
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.

Question 8

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Accepted Answer

A) operate all plants at full capacity. 
B) operate all plants at less than full capacity. 
C) produce at several plants with different operating costs. 
D) produce at one plant with the lowest possible operating cost. 
A) operate all plants at full capacity. 
B) operate all plants at less than full capacity. 
C) produce at several plants with different operating costs. 
D) produce at one plant with the lowest possible operating cost.

Question 9

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Accepted Answer

A) True 
 B)False

Question 10

Malthus argued that any increase in living standards would cause a decrease in population growth.

Accepted Answer

A) True 
 B)False

Question 11

A fishery collapse occurs when the

Accepted Answer

A) fishery goes out of business. 
B) fishery is taken over by a government agency. 
C) fishery's population is harvested at a higher rate than it reproduces. 
D) fishery's population reproduces at a higher rate than it's harvested. 
A) fishery goes out of business. 
B) fishery is taken over by a government agency. 
C) fishery's population is harvested at a higher rate than it reproduces. 
D) fishery's population reproduces at a higher rate than it's harvested.

Question 12

The total fertility rate necessary to keep the population constant is approximately equal to

Accepted Answer

A) 1.0. 
B) 1.5. 
C) 2.1. 
D) 3.0. 
A) 1.0. 
B) 1.5. 
C) 2.1. 
D) 3.0.

Question 13

Which of the following best describes the typical growth pattern of trees for logging?

Accepted Answer

A) Trees grow slowly at first, then grow exponentially until cut down. 
B) Trees grow quickly at first, then continue to grow at a declining rate. 
C) Trees grow quickly at first, then plateau for a time before resuming an exponential growth pattern. 
D) Trees grow slowly at first, quickly in the middle years, and then at a diminishing rate into old age. 
A) Trees grow slowly at first, then grow exponentially until cut down. 
B) Trees grow quickly at first, then continue to grow at a declining rate. 
C) Trees grow quickly at first, then plateau for a time before resuming an exponential growth pattern. 
D) Trees grow slowly at first, quickly in the middle years, and then at a diminishing rate into old age.

Question 14

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Accepted Answer

A) overuse of natural resources, leading to famines. 
B) stable uses of natural resources, creating long-term stability. 
C) efficient use of natural resources, fostering prosperity. 
D) reduced dependence on natural resources, leading to growth. 
A) overuse of natural resources, leading to famines. 
B) stable uses of natural resources, creating long-term stability. 
C) efficient use of natural resources, fostering prosperity. 
D) reduced dependence on natural resources, leading to growth.

Question 15

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

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) issuing individual transferable quotas (ITQs) 
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) issuing individual transferable quotas (ITQs)

Question 16

According to data from the UN Food and Agriculture Organization, which of the following nations had the fastest growing area of forested land in the period 2010-2015?

Accepted Answer

A) Brazil 
B) United States 
C) Nigeria 
D) Iceland 
A) Brazil 
B) United States 
C) Nigeria 
D) Iceland

Question 17

In 2014, according to U.S.Energy Information Administration data, which of the following sources of energy contributed the largest share to U.S.electricity generation?

Accepted Answer

A) petroleum 
B) nuclear 
C) hydropower 
D) natural gas 
A) petroleum 
B) nuclear 
C) hydropower 
D) natural gas

Question 18

A BTU is the amount of energy needed to

Accepted Answer

A) raise the temperature of one pound of water by one degree Fahrenheit. 
B) boil one gallon of water for one minute. 
C) raise the air temperature one degree Celsius for one hour. 
D) raise the temperature of one pint of water by one degree Celsius. 
A) raise the temperature of one pound of water by one degree Fahrenheit. 
B) boil one gallon of water for one minute. 
C) raise the air temperature one degree Celsius for one hour. 
D) raise the temperature of one pint of water by one degree Celsius.

Question 19

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

Question 20

Commercially run forestry companies that have secure property rights over their trees

Accepted Answer

A) harvest them as soon as possible and replant them when they are harvested. 
B) harvest them as soon as possible and do not replant them when they are harvested. 
C) do not harvest them as soon as possible and do replant them when they are harvested. 
D) do not harvest them as soon as possible and do not replant them when they are harvested. 
A) harvest them as soon as possible and replant them when they are harvested. 
B) harvest them as soon as possible and do not replant them when they are harvested. 
C) do not harvest them as soon as possible and do replant them when they are harvested. 
D) do not harvest them as soon as possible and do not replant them when they are harvested.

Exam 19: Natural Resource and Energy Economics

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Commodity-pricing data from The Economist show a dramatic long-run decline in 25 important real commodity prices from 1850 to 2015.This decline primarily occurred because the

Electricity generating plants with low fixed costs tend to have high operating costs.

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

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Malthus argued that any increase in living standards would cause a decrease in population growth.

A fishery collapse occurs when the

The total fertility rate necessary to keep the population constant is approximately equal to

Which of the following best describes the typical growth pattern of trees for logging?

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

According to data from the UN Food and Agriculture Organization, which of the following nations had the fastest growing area of forested land in the period 2010-2015?

In 2014, according to U.S.Energy Information Administration data, which of the following sources of energy contributed the largest share to U.S.electricity generation?

A BTU is the amount of energy needed to

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

Commercially run forestry companies that have secure property rights over their trees

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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