Exam 19: Natural Resource and Energy Economics

Refer to the diagram, representing Slippery Slope Oil Company. How many million barrels should Slippery Slope extract and sell this year?

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Based on the fertility-rate calculations for major industrialized countries, their populations are expected to decline significantly in the coming years because the

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

Alex and Belle are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Belle wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. The forest is more likely to be harvested and replanted at a sustainable rate if

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

Modernizing economies that have declining birthrates may still experience population growth because of rapidly declining death rates.

An electricity company is considering damming a small river to generate electricity at a cost of $250,000 and a profit of $300,000 in 5 years. The current market rate of interest is 3 percent. Should the company make the investment?

A fishery collapse occurs when the

According to the concept of demographic transition,

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

If predictions that the world will run out of oil or petroleum in the next century become true, then

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

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

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

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

A user cost of zero implies that

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Relative to 1800, today in the world there are