Question 1

Which of the following explains why commodity prices have fallen since 1850?

Accepted Answer

A) The demand for productive resources has fallen faster than the supply of those resources. 
B) The demand for productive resources has grown faster than the supply of those resources. 
C) The supply of productive resources has increased, while the demand has fallen. 
D) The supply of productive resources has grown faster than the demand for those resources. 
A) The demand for productive resources has fallen faster than the supply of those resources. 
B) The demand for productive resources has grown faster than the supply of those resources. 
C) The supply of productive resources has increased, while the demand has fallen. 
D) The supply of productive resources has grown faster than the demand for those resources.

Question 2

A plot of the Environment Performance Index (EPI)scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Accepted Answer

A) GDP rises, EPI score falls. 
B) GDP rises, EPI score rises. 
C) GDP falls, EPI score rises. 
D) GDP falls, EPI score stays relatively constant. 
A) GDP rises, EPI score falls. 
B) GDP rises, EPI score rises. 
C) GDP falls, EPI score rises. 
D) GDP falls, EPI score stays relatively constant.

Question 3

In fisheries management, ITQ stands for

Accepted Answer

A) international transferable quota. 
B) individual transferable quota. 
C) international tuna quotas. 
D) individual trolling quotas. 
A) international transferable quota. 
B) individual transferable quota. 
C) international tuna quotas. 
D) individual trolling quotas.

Question 4

Granting property rights to forestland tends to increase the rate at which the land is deforested.

Accepted Answer

A) True 
 B)False

Question 5

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 6

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Accepted Answer

A) operate all plants at full capacity. 
B) operate all plants at less than full capacity. 
C) produce at several plants with different operating costs. 
D) produce at one plant with the lowest possible operating cost. 
A) operate all plants at full capacity. 
B) operate all plants at less than full capacity. 
C) produce at several plants with different operating costs. 
D) produce at one plant with the lowest possible operating cost.

Question 7

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Accepted Answer

A) True 
 B)False

Question 8

Since 1850, the

Accepted Answer

A) supply and demand for productive resources have grown at the same rate. 
B) supply of productive resources has grown faster than the demand for those resources. 
C) demand for productive resources has grown faster than the supply of those resources. 
D) supply of productive resources has increased, while the demand has fallen. 
A) supply and demand for productive resources have grown at the same rate. 
B) supply of productive resources has grown faster than the demand for those resources. 
C) demand for productive resources has grown faster than the supply of those resources. 
D) supply of productive resources has increased, while the demand has fallen.

Question 9

The United States is in imminent danger of running out of energy.

Accepted Answer

A) True 
 B)False

Question 10

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 11

In time-value of money analysis, a decrease in interest rates

Accepted Answer

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

Question 12

The primary focus of energy economics is how

Accepted Answer

A) energy consumption is increasing. 
B) energy production is decreasing. 
C) people deal with the scarcity of energy. 
D) people conserve crude oil for future use. 
A) energy consumption is increasing. 
B) energy production is decreasing. 
C) people deal with the scarcity of energy. 
D) people conserve crude oil for future use.

Question 13

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil)when oil prices reach _____ or more per barrel.

Accepted Answer

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

Question 14

As of 2017, approximately 62 percent of U.S. electricity is generated from

Accepted Answer

A) hydroelectric. 
B) petroleum. 
C) nuclear energy. 
D) coal and natural gas. 
A) hydroelectric. 
B) petroleum. 
C) nuclear energy. 
D) coal and natural gas.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The user cost of extracting a nonrenewable resource is

Accepted Answer

A) the sum of the dollar expenditures incurred to extract the resource. 
B) the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C) the selling price of the resource to the companies using it to produce goods and services. 
D) directly proportional to how much of the nonrenewable resource remains. 
A) the sum of the dollar expenditures incurred to extract the resource. 
B) the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C) the selling price of the resource to the companies using it to produce goods and services. 
D) directly proportional to how much of the nonrenewable resource remains.

Question 17

Refer to the diagram, assuming that the firm represented is operating on curve TC ₀ . How much will the firm extract this year?

Accepted Answer

A) 500 
B) 750 
C) 1,000 
D) It cannot be determined with the information given. 
A) 500 
B) 750 
C) 1,000 
D) It cannot be determined with the information given.

Question 18

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 $20; Oli's cost per ton is $28. Assume that the market price of Pacific halibut is $40 per ton. If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit of 2,000 tons, her profit would be

Accepted Answer

A) $20,000. 
B) $32,000. 
C) $30,000. 
D) $40,000. 
A) $20,000. 
B) $32,000. 
C) $30,000. 
D) $40,000.

Question 19

A total fertility rate of 1.0 is necessary to keep the population constant over time.

Accepted Answer

A) True 
 B)False

Question 20

An increasing ratio of real GDP to BTU of energy consumption suggests that

Accepted Answer

A) increased energy consumption led to increased energy production. 
B) increased energy production led to increased energy consumption. 
C) the discovery of energy sources greatly increased energy supply. 
D) advances in technology greatly increased energy efficiency. 
A) increased energy consumption led to increased energy production. 
B) increased energy production led to increased energy consumption. 
C) the discovery of energy sources greatly increased energy supply. 
D) advances in technology greatly increased energy efficiency.

Exam 19: Natural Resource and Energy Economics

Which of the following explains why commodity prices have fallen since 1850?

A plot of the Environment Performance Index (EPI)scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

In fisheries management, ITQ stands for

Granting property rights to forestland tends to increase the rate at which the land is deforested.

TAC policies help reduce overfishing and reduce costs for fishers.

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Since 1850, the

The United States is in imminent danger of running out of energy.

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

In time-value of money analysis, a decrease in interest rates

The primary focus of energy economics is how

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil)when oil prices reach _____ or more per barrel.

As of 2017, approximately 62 percent of U.S. electricity is generated from

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

The user cost of extracting a nonrenewable resource is

Refer to the diagram, assuming that the firm represented is operating on curve TC ₀ . How much will the firm extract this year?

A total fertility rate of 1.0 is necessary to keep the population constant over time.

An increasing ratio of real GDP to BTU of energy consumption suggests that

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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