Exam 19: Natural Resource and Energy Economics

One of the worst systems for encouraging conservation of fisheries is the combination of total allowable catch (TAC)with individual transferable quota (ITQ).

The amount of land covered by forests is

Which of the following factors fosters the survival of alternative-energy companies?

In which step of the demographic transition would we expect population to grow the fastest?

As technologies improve, the costs of producing alternatives will likely fall, reducing the cost of replacing oil.

Distinguish between renewable resources and nonrenewable resources.

In the absence of enforceable property rights, there is little incentive to preserve resources for future use.

Paul Ehrlich's book The Population Bomb made which of the following predictions?

Property rights over fish in the open ocean exist once the fish are caught.

What are some of the benefits of forests? What percent of the land area in the U.S. is covered in forests?

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Higher interest rates will, all else equal,

The table shows the quantity of gold bars in thousands, the extraction cost for each thousand bars (in millions of dollars), and the user cost of each thousand bars (in millions of dollars)facing the OZ Mining Company this year (all costs are marginal). If the current price of a bar of gold is $25,000, how many bars (in thousands)should OZ extract and sell this year in order to maximize profits?

Population will necessarily fall if the

The user cost of a resource is the market price paid by the buyer of the resource.

What are conflict diamonds, and what do they illustrate about resource use?

In energy economics, "BTU" stands for

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 $25. If the market price of Pacific halibut is $35 per ton, what is the minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs?

If the price of oil falls, the economic viability of alternative energy sources also tends to fall.

Alternative fuels become more economically viable as