Exam 19: Natural Resource and Energy Economics

A Middle Eastern country has an oil reserve that it can extract for a profit of $60 a barrel today, $65 a barrel in two years, $70 a barrel in three years, and $75 in four years.The current market rate of interest is 7 percent.When should this country tap into its oil reserve to obtain the most profit per barrel in Present value terms?

Resource demand has grown over time

One major reason why the survival of elephants is threatened is that

An energy company has recently discovered a natural gas reserve.The company can tap this reserve at a cost of $350,000 and obtain a profit of $450,000 in three years.The current market rate is 15 percent.Should the company make the investment?

Which of the following nations, as of 2015, has a total fertility rate that would suggest that its next generation will be just over half the size of the current generation?

The Malthusian prediction of Paul Ehrlich in The Population Bomb in 1968 proved to be wrong because population growth

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

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

Optimal resource allocation involves considering current and future uses, benefits, and costs.

The key difficulty with fishery management is that

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

The world's population increased so rapidly from 1800 to the present day because of higher

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

The user cost of nonrenewable resources is

At any level of a mining firm's output, total cost will be equal to extraction costs

TAC policies help reduce overfishing and reduce costs for fishers.

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

A fishery collapse

Kara and Kyle are competing sockeye salmon fishers.Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each.Kara's cost per ton is $8; Kyle's cost per ton is $12.If the market price of sockeye salmon is $15 per ton, what is the maximum amount Kara would be willing to pay per ton for Kyle's ITQs?