Question 1

In time-value of money analysis, an increase in interest rates

Accepted Answer

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

Question 2

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

Accepted Answer

A) preserving elephants in Africa 
B) drilling for oil in Saudi Arabia 
C) mining of oil shale in Canada 
D) hunting of deer in the United States 
A) preserving elephants in Africa 
B) drilling for oil in Saudi Arabia 
C) mining of oil shale in Canada 
D) hunting of deer in the United States

Question 3

Because wind turbines supply no energy on windless days, and solar power is only generated when the sun is up and out, one inherent problem with both wind and solar power is the

Accepted Answer

A) government subsidy problem. 
B) zero-emissions problem. 
C) energy storage problem. 
D) oil-complementarity problem. 
A) government subsidy problem. 
B) zero-emissions problem. 
C) energy storage problem. 
D) oil-complementarity problem.

Question 4

Extraction costs of a nonrenewable resource include the

Accepted Answer

A) cost of removal from the ground only. 
B) cost of removal from the ground plus the cost of preparation for sale. 
C) cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future. 
D) cost of removal from the ground plus replanting costs. 
A) cost of removal from the ground only. 
B) cost of removal from the ground plus the cost of preparation for sale. 
C) cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future. 
D) cost of removal from the ground plus replanting costs.

Question 5

The optimal extraction level in the present for a nonrenewable resource is

Accepted Answer

A) zero. 
B) where the market price of the resource equals the extraction cost of the last unit. 
C) where the market price of the resource equals the extraction cost of the last unit plus the user cost of the last unit. 
D) where the extraction cost of the last unit equals the user cost of the last unit. 
A) zero. 
B) where the market price of the resource equals the extraction cost of the last unit. 
C) where the market price of the resource equals the extraction cost of the last unit plus the user cost of the last unit. 
D) where the extraction cost of the last unit equals the user cost of the last unit.

Question 6

The total fertility rate

Accepted Answer

A) measures the average number of children that a woman is expected to have during her lifetime. 
B) exceeds the replacement rate in countries with a falling population. 
C) equals the rate of population change over time. 
D) rises as income rises. 
A) measures the average number of children that a woman is expected to have during her lifetime. 
B) exceeds the replacement rate in countries with a falling population. 
C) equals the rate of population change over time. 
D) rises as income rises.

Question 7

In which step of the demographic transition would we expect population to grow the fastest?

Accepted Answer

A) Step 1 
B) Step 2 
C) Step 3 
D) There is no step that would be expected to consistently yield faster population growth. 
A) Step 1 
B) Step 2 
C) Step 3 
D) There is no step that would be expected to consistently yield faster population growth.

Question 8

(Last Word) According to Yale University's Environmental Performance Index (EPI),

Accepted Answer

A) countries with lower GDP per person tend to have healthier environments. 
B) countries with higher GDP per person tend to have healthier environments. 
C) there is no correlation between GDP per person and environmental quality. 
D) growth in GDP per person initially improves environmental quality and then gradually reduces it. 
A) countries with lower GDP per person tend to have healthier environments. 
B) countries with higher GDP per person tend to have healthier environments. 
C) there is no correlation between GDP per person and environmental quality. 
D) growth in GDP per person initially improves environmental quality and then gradually reduces it.

Question 9

The Economist's Commodity Price Index reveals that the supply of productive resources has increased faster than the demand for decades.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) an increase in the present value of expected future profits 
B) a decrease in extraction costs 
C) a decrease in user costs 
D) an increase in the current price of the resource 
A) an increase in the present value of expected future profits 
B) a decrease in extraction costs 
C) a decrease in user costs 
D) an increase in the current price of the resource

Question 11

Under a TAC system, fishing of a particular fishery is halted after

Accepted Answer

A) a predetermined time period. 
B) a predetermined amount of fish has been caught. 
C) a predetermined number of fishing trips have been taken by each registered boat. 
D) the market price of the fish falls below a predetermined trigger price. 
A) a predetermined time period. 
B) a predetermined amount of fish has been caught. 
C) a predetermined number of fishing trips have been taken by each registered boat. 
D) the market price of the fish falls below a predetermined trigger price.

Question 12

According to U.S.Geological Survey data from 1950 to 2010, total water use in the United States has

Accepted Answer

A) continually increased. 
B) continually decreased. 
C) increased and then leveled off. 
D) decreased and then leveled off. 
A) continually increased. 
B) continually decreased. 
C) increased and then leveled off. 
D) decreased and then leveled off.

Question 13

Total allowable catch policies and individual transferable quotas both

Accepted Answer

A) limit catch sizes and promote efficiency. 
B) limit catch sizes, but TACs promote inefficiency. 
C) promote efficiency, but only TACs limit catch sizes. 
D) promote efficiency, but only ITQs limit catch sizes. 
A) limit catch sizes and promote efficiency. 
B) limit catch sizes, but TACs promote inefficiency. 
C) promote efficiency, but only TACs limit catch sizes. 
D) promote efficiency, but only ITQs limit catch sizes.

Question 14

Better technology means that more output in the U.S.economy can be produced

Accepted Answer

A) with a greater amount of energy input. 
B) with the same amount of energy input. 
C) but it will lead to a fall in the standard of living. 
D) but it will lead to a rise in population growth. 
A) with a greater amount of energy input. 
B) with the same amount of energy input. 
C) but it will lead to a fall in the standard of living. 
D) but it will lead to a rise in population growth.

Question 15

Definition of property rights is a key component to proper conservation of resources.

Accepted Answer

A) True 
 B)False

Question 16

The user cost of a resource is the market price paid by the buyer of the resource.

Accepted Answer

A) True 
 B)False

Question 17

ITQs both limit catches and encourage fishing in the least costly way.

Accepted Answer

A) True 
 B)False

Question 18

What was the largest U.S.fishery, in dollar terms, in 2014?

Accepted Answer

A) Pacific halibut 
B) sea scallop 
C) walleye pollock 
D) lobster 
A) Pacific halibut 
B) sea scallop 
C) walleye pollock 
D) lobster

Question 19

In modern economies, the cost of raising children has

Accepted Answer

A) decreased because of laxer enforcement of laws that make child labor illegal. 
B) increased because of stronger enforcement of laws that make child labor illegal. 
C) increased because of fewer requirements for schooling until adulthood. 
D) decreased because of more requirements for schooling until adulthood. 
A) decreased because of laxer enforcement of laws that make child labor illegal. 
B) increased because of stronger enforcement of laws that make child labor illegal. 
C) increased because of fewer requirements for schooling until adulthood. 
D) decreased because of more requirements for schooling until adulthood.

Question 20

A company's extraction cost curve slopes upward to reflect

Accepted Answer

A) that marginal extraction costs increase as the company extracts more of the resource. 
B) that user costs rise as the company extracts more of the resource. 
C) that the price of the nonrenewable resource increases as the amount extracted increases. 
D) all of these. 
A) that marginal extraction costs increase as the company extracts more of the resource. 
B) that user costs rise as the company extracts more of the resource. 
C) that the price of the nonrenewable resource increases as the amount extracted increases. 
D) all of these.

Exam 19: Natural Resource and Energy Economics

In time-value of money analysis, an increase in interest rates

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

Because wind turbines supply no energy on windless days, and solar power is only generated when the sun is up and out, one inherent problem with both wind and solar power is the

Extraction costs of a nonrenewable resource include the

The optimal extraction level in the present for a nonrenewable resource is

The total fertility rate

In which step of the demographic transition would we expect population to grow the fastest?

(Last Word) According to Yale University's Environmental Performance Index (EPI),

The Economist's Commodity Price Index reveals that the supply of productive resources has increased faster than the demand for decades.

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

Under a TAC system, fishing of a particular fishery is halted after

According to U.S.Geological Survey data from 1950 to 2010, total water use in the United States has

Total allowable catch policies and individual transferable quotas both

Better technology means that more output in the U.S.economy can be produced

Definition of property rights is a key component to proper conservation of resources.

The user cost of a resource is the market price paid by the buyer of the resource.

ITQs both limit catches and encourage fishing in the least costly way.

What was the largest U.S.fishery, in dollar terms, in 2014?

In modern economies, the cost of raising children has

A company's extraction cost curve slopes upward to reflect

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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