Exam 19: Natural Resource and Energy Economics

Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today.

Explain how fracking has boosted the U.S. oil supply.

An oil company is considering drilling in the Gulf at a current cost of $350,000 with an expected profit of $400,000 in three years. The current market rateof interest is 5 percent. Should the company make the investment?

Consider a coal mining company that can mine coal this year or next year. As expected future profits increase, the extraction quantity this year

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 of the following countries could this statement be used to explain its current population trend?

In 2017, according to U.S. Energy Information Administration data, which of the following sources of energy contributed the smallest share to U.S. electricity generation?

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

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 $26; Oli's cost per ton is $31. If the market price of Pacific halibut is $37 per ton, what is the maximum amount Melanie would be willing to pay per ton for Oli's ITQs?

What is energy economics, and what does it have to say about energy demand and efficiency?

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

Mining of "conflict diamonds" tends to

The graph shows the extraction costs for TX Oil Company in the first year in a situation where it will extract oil from a reserve over two years. If the current market price rises from $60 to $70 and user costs are not considered, the extraction quantity

The Economist magazine's Commodities Price Index tracks the prices of the most

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

Profit-maximizing extraction companies will attempt to

In modern economies, the cost of raising children has

The use of present value calculations in valuing natural resources is important because it

If a country has a total fertility rate of 1.80, then, all else equal, we would expect

What is a tradable fishing limit that gives the holder the right to harvest a given quantity of fish during a given time period?

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, and Kara and Kyle both catch their quota, their combined profit will be