Question 1

Demographers predict that declines in birthrates are in part due to

Accepted Answer

A) more strict adherence to religious beliefs and practices regarding human reproduction. 
B) fewer career opportunities for women in many societies. 
C) the increased expense of raising a child in modern societies. 
D) falling standards of living in many countries around the world. 
A) more strict adherence to religious beliefs and practices regarding human reproduction. 
B) fewer career opportunities for women in many societies. 
C) the increased expense of raising a child in modern societies. 
D) falling standards of living in many countries around the world.

Question 2

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

Accepted Answer

A) True 
 B)False

Question 3

How is elephant preservation affected by property rights?

Accepted Answer

In certain countries, property rights ov

Question 4

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

Accepted Answer

A) $6,000. 
B) $14,000. 
C) $20,000. 
D) $30,000. 
A) $6,000. 
B) $14,000. 
C) $20,000. 
D) $30,000.

Question 5

Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Joe offered to sell his ITQ to Ronny for $7,000, he and Ronny would

Accepted Answer

A) make the sale because they're both better off. 
B) not make the sale, because Joe is better off and Ronny is not. 
C) not make the sale, because Ronny is better of and Joe is not. 
D) not make the sale, because neither is better off. 
A) make the sale because they're both better off. 
B) not make the sale, because Joe is better off and Ronny is not. 
C) not make the sale, because Ronny is better of and Joe is not. 
D) not make the sale, because neither is better off.

Question 6

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

Accepted Answer

A) a decrease in the price of the resource 
B) an increase in the extraction cost of the resource 
C) a decrease in the user cost of the resource 
D) a decrease in interest rates 
A) a decrease in the price of the resource 
B) an increase in the extraction cost of the resource 
C) a decrease in the user cost of the resource 
D) a decrease in interest rates

Question 7

Which of the following nations, as of 2018, has a total fertility rate that would suggest that its next generation will be significantly smaller the current generation?

Accepted Answer

A) Japan 
B) Bangladesh 
C) Mexico 
D) all of these nations 
A) Japan 
B) Bangladesh 
C) Mexico 
D) all of these nations

Question 8

If the property rights for forests are clear and enforced, then

Accepted Answer

A) they will become common property. 
B) governments will not be able to overtax them. 
C) owners have profit incentives to harvest slowly over time. 
D) the logging of the forest will increase at an unsustainable rate. 
A) they will become common property. 
B) governments will not be able to overtax them. 
C) owners have profit incentives to harvest slowly over time. 
D) the logging of the forest will increase at an unsustainable rate.

Question 9

Economists widely fear that the world will run out of energy in the next century.

Accepted Answer

A) True 
 B)False

Question 10

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

Accepted Answer

A) decrease, while the amount of current extraction increases. 
B) decrease, and the amount of current extraction decreases. 
C) increase, and the amount of current extraction increases. 
D) increase, while the amount of current extraction decreases. 
A) decrease, while the amount of current extraction increases. 
B) decrease, and the amount of current extraction decreases. 
C) increase, and the amount of current extraction increases. 
D) increase, while the amount of current extraction decreases.

Question 11

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) an increase in the present value of expected future profits 
B) a decrease in extraction costs 
C) a decrease in user costs 
D) an increase in the current price of the resource 
A) an increase in the present value of expected future profits 
B) a decrease in extraction costs 
C) a decrease in user costs 
D) an increase in the current price of the resource

Question 13

According to the concept of present value, a $50 barrel of oil today is worth

Accepted Answer

A) less than a $50 barrel in 2 years. 
B) more than a $50 barrel in 2 years. 
C) the same as a $50 barrel in 2 years. 
D) the same as a $50 barrel in 2 years, but only if there is no inflation during those 2 years. 
A) less than a $50 barrel in 2 years. 
B) more than a $50 barrel in 2 years. 
C) the same as a $50 barrel in 2 years. 
D) the same as a $50 barrel in 2 years, but only if there is no inflation during those 2 years.

Question 14

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

Accepted Answer

A) plus user costs. 
B) minus user costs. 
C) times user costs. 
D) divided by user costs. 
A) plus user costs. 
B) minus user costs. 
C) times user costs. 
D) divided by user costs.

Question 15

Average per capita water consumption in the United States was approximately how many gallons per day in 2015?

Accepted Answer

A) 322 
B) 1,134 
C) 1,941 
D) 991 
A) 322 
B) 1,134 
C) 1,941 
D) 991

Question 16

The goal of profit-maximizing extraction firms such as an oil company or a mining company is to extract resources

Accepted Answer

A) as fast as possible. 
B) as slowly as possible. 
C) when the user costs are rising. 
D) for the greatest stream of profit over time. 
A) as fast as possible. 
B) as slowly as possible. 
C) when the user costs are rising. 
D) for the greatest stream of profit over time.

Question 17

Which of the following is the best example of a fishery?

Accepted Answer

A) all marine life along the Great Barrier Reef 
B) Pacific halibut 
C) U.S. Department of Fish and Game 
D) crab 
A) all marine life along the Great Barrier Reef 
B) Pacific halibut 
C) U.S. Department of Fish and Game 
D) crab

Question 18

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

Accepted Answer

A) Energy production with coal and gas generates less pollution. 
B) Wind and solar energy availability is subject to large fluctuations because of the inability to store the power. 
C) Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar. 
D) Consumers are largely unwilling to buy power generated from wind and solar. 
A) Energy production with coal and gas generates less pollution. 
B) Wind and solar energy availability is subject to large fluctuations because of the inability to store the power. 
C) Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar. 
D) Consumers are largely unwilling to buy power generated from wind and solar.

Question 19

About three-fourths of U.S. electricity is generated using coal, natural gas, and petroleum.

Accepted Answer

A) True 
 B)False

Question 20

Rapid population growth since 1800 has occurred primarily because of

Accepted Answer

A) a significant increase in total fertility rates as living standards have risen. 
B) a significant reduction in death rates as living standards have risen. 
C) a significant increase in replacement rates as living standards have risen. 
D) all of the reasons given in the other possible answers. 
A) a significant increase in total fertility rates as living standards have risen. 
B) a significant reduction in death rates as living standards have risen. 
C) a significant increase in replacement rates as living standards have risen. 
D) all of the reasons given in the other possible answers.

Exam 19: Natural Resource and Energy Economics

Demographers predict that declines in birthrates are in part due to

Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others.

How is elephant preservation affected by property rights?

Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Joe offered to sell his ITQ to Ronny for $7,000, he and Ronny would

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

Which of the following nations, as of 2018, has a total fertility rate that would suggest that its next generation will be significantly smaller the current generation?

If the property rights for forests are clear and enforced, then

Economists widely fear that the world will run out of energy in the next century.

In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

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

According to the concept of present value, a $50 barrel of oil today is worth

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

Average per capita water consumption in the United States was approximately how many gallons per day in 2015?

The goal of profit-maximizing extraction firms such as an oil company or a mining company is to extract resources

Which of the following is the best example of a fishery?

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

About three-fourths of U.S. electricity is generated using coal, natural gas, and petroleum.

Rapid population growth since 1800 has occurred primarily because of

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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