Question 1

Solar energy, forests, fish, and oil are all examples of

Accepted Answer

A) renewable resources. 
B) capital resources. 
C) tangible resources. 
D) natural resources. 
A) renewable resources. 
B) capital resources. 
C) tangible resources. 
D) natural resources.

Question 2

A logging company is considering logging an area for a current cost of $500 per acre to obtain a profit the next year of $600 per acre. The market rate of interest 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 3

A rising standard of living will

Accepted Answer

A) necessarily reduce the population by reducing the birthrate. 
B) increase the birthrate. 
C) reduce the birthrate, but population may continue to grow if the death rate falls more quickly. 
D) reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children. 
A) necessarily reduce the population by reducing the birthrate. 
B) increase the birthrate. 
C) reduce the birthrate, but population may continue to grow if the death rate falls more quickly. 
D) reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children.

Question 4

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 5

In recent years, per capita energy use in developed countries such as the United States has

Accepted Answer

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

Question 6

Nonrenewable natural resources are fixed in supply (actually or virtually).

Accepted Answer

A) True 
 B)False

Question 7

The user cost of extracting a nonrenewable resource is

Accepted Answer

A) inversely related to how much of the resource remains. 
B) directly related to how much of the resource remains. 
C) unrelated to how much of the resource remains. 
D) inversely related to the expected future price of the resource. 
A) inversely related to how much of the resource remains. 
B) directly related to how much of the resource remains. 
C) unrelated to how much of the resource remains. 
D) inversely related to the expected future price of the resource.

Question 8

From 1950 to 2017, according to data from the U.S. Energy Information Administration, the ratio of real GDP to energy consumption in the United States has been

Accepted Answer

A) relatively constant. 
B) slowly decreasing. 
C) decreasing steeply. 
D) rising significantly. 
A) relatively constant. 
B) slowly decreasing. 
C) decreasing steeply. 
D) rising significantly.

Question 9

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 10

An example of a renewable resource would be

Accepted Answer

A) oil. 
B) coal. 
C) iron ore. 
D) wildlife. 
A) oil. 
B) coal. 
C) iron ore. 
D) wildlife.

Question 11

An oil company has the opportunity to extract oil from a reserve in three years with a per barrel profit of $70 per barrel. The current market rate of interest is 4 percent. The present value of this future extraction is about

Accepted Answer

A) $55 
B) $70 
C) $72 
D) $62 
A) $55 
B) $70 
C) $72 
D) $62

Question 12

According to the United Nations Food and Agriculture Organization, approximately what percentage of the world's fisheries in 2018 were overexploited?

Accepted Answer

A) 7 percent 
B) 15 percent 
C) 33 percent 
D) 60 percent 
A) 7 percent 
B) 15 percent 
C) 33 percent 
D) 60 percent

Question 13

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A) wind 
B) timber 
C) oceans 
D) tin 
A) wind 
B) timber 
C) oceans 
D) tin

Question 14

Energy efficiency requires that we employ

Accepted Answer

A) only the lowest-cost energy inputs. 
B) only domestic energy sources. 
C) a mix of energy inputs, some of which are more expensive than others. 
D) imported energy inputs and save domestic resources for future use. 
A) only the lowest-cost energy inputs. 
B) only domestic energy sources. 
C) a mix of energy inputs, some of which are more expensive than others. 
D) imported energy inputs and save domestic resources for future use.

Question 15

The key demand-side factors that cause the depletion of finite natural resources are

Accepted Answer

A) population and productivity. 
B) productivity and per capita consumption. 
C) per capita consumption and efficiency. 
D) population and per capita consumption. 
A) population and productivity. 
B) productivity and per capita consumption. 
C) per capita consumption and efficiency. 
D) population and per capita consumption.

Question 16

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 17

Resource demand has grown over time

Accepted Answer

A) because of population growth only. 
B) because of increased consumption per person only. 
C) because of both increased population and greater consumption per person. 
D) despite decreases in population and consumption per person. 
A) because of population growth only. 
B) because of increased consumption per person only. 
C) because of both increased population and greater consumption per person. 
D) despite decreases in population and consumption per person.

Question 18

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $35 per unit in 3 years. The current market rate of interest is 6 percent. The present value of this cost is about

Accepted Answer

A) $42. 
B) $37. 
C) $33. 
D) $29. 
A) $42. 
B) $37. 
C) $33. 
D) $29.

Question 19

About what minimum price per barrel of oil is necessary for biodiesel to become economically viable as an alternative energy source?

Accepted Answer

A) $40 per barrel 
B) $50 per barrel 
C) $80 per barrel 
D) $110 per barrel 
A) $40 per barrel 
B) $50 per barrel 
C) $80 per barrel 
D) $110 per barrel

Question 20

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2016?

Accepted Answer

A) blue crab 
B) Pacific cod 
C) oysters 
D) lobster 
A) blue crab 
B) Pacific cod 
C) oysters 
D) lobster

Exam 19: Natural Resource and Energy Economics

Solar energy, forests, fish, and oil are all examples of

A logging company is considering logging an area for a current cost of $500 per acre to obtain a profit the next year of $600 per acre. The market rate of interest is 10 percent. Should the company make the investment?

A rising standard of living will

An example of a nonrenewable resource would be

In recent years, per capita energy use in developed countries such as the United States has

Nonrenewable natural resources are fixed in supply (actually or virtually).

The user cost of extracting a nonrenewable resource is

From 1950 to 2017, according to data from the U.S. Energy Information Administration, the ratio of real GDP to energy consumption in the United States has been

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

An example of a renewable resource would be

An oil company has the opportunity to extract oil from a reserve in three years with a per barrel profit of $70 per barrel. The current market rate of interest is 4 percent. The present value of this future extraction is about

According to the United Nations Food and Agriculture Organization, approximately what percentage of the world's fisheries in 2018 were overexploited?

Which of the following is considered a nonrenewable natural resource?

Energy efficiency requires that we employ

The key demand-side factors that cause the depletion of finite natural resources are

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

Resource demand has grown over time

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $35 per unit in 3 years. The current market rate of interest is 6 percent. The present value of this cost is about

About what minimum price per barrel of oil is necessary for biodiesel to become economically viable as an alternative energy source?

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2016?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, 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

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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