Question 1

Which of the following is a nonrenewable source of energy?

Accepted Answer

A) Corn 
B) Ethanol 
C) Petroleum 
D) Bagasse 
E) Biomass 
A) Corn 
B) Ethanol 
C) Petroleum 
D) Bagasse 
E) Biomass

Question 2

The supply curve of land in the market for uses of land is:

Accepted Answer

A) perfectly inelastic. 
B) nonexistent. 
C) perfectly elastic. 
D) positively sloped. 
E) negatively sloped. 
A) perfectly inelastic. 
B) nonexistent. 
C) perfectly elastic. 
D) positively sloped. 
E) negatively sloped.

Question 3

Lack of well-defined ____ may cause market failures.

Accepted Answer

A) fiscal policies 
B) public transportation systems 
C) private property rights 
D) interest rates 
E) monetary policies 
A) fiscal policies 
B) public transportation systems 
C) private property rights 
D) interest rates 
E) monetary policies

Question 4

For any particular period of time,say a year,the supply of exhaustible resources:

Accepted Answer

A) decreases infinitely with increase in price. 
B) remains unaffected by any change in price. 
C) increases infinitely with increase in price. 
D) increases to a certain extent with increase in price. 
E) decreases to a certain extent with increase in price. 
A) decreases infinitely with increase in price. 
B) remains unaffected by any change in price. 
C) increases infinitely with increase in price. 
D) increases to a certain extent with increase in price. 
E) decreases to a certain extent with increase in price.

Question 5

Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource.

Accepted Answer

A) True 
 B)False

Question 6

As extraction of a nonrenewable resource increases,the supply curve shifts up because:

Accepted Answer

A) more substitutes become available. 
B) competition among the existing suppliers intensifies. 
C) the marginal cost of extracting any given amount increases. 
D) the resource finds alternative usage. 
E) the resource becomes less productive. 
A) more substitutes become available. 
B) competition among the existing suppliers intensifies. 
C) the marginal cost of extracting any given amount increases. 
D) the resource finds alternative usage. 
E) the resource becomes less productive.

Question 7

When does the entire earning of a resource comprise of economic rent?

Accepted Answer

A) When the supply curve of the resource is relatively elastic 
B) When the supply curve of the resource is horizontal 
C) When the supply curve of the resource is vertical 
D) When the supply curve of the resource is relatively inelastic 
E) When the supply curve of the resource is a ray through the origin 
A) When the supply curve of the resource is relatively elastic 
B) When the supply curve of the resource is horizontal 
C) When the supply curve of the resource is vertical 
D) When the supply curve of the resource is relatively inelastic 
E) When the supply curve of the resource is a ray through the origin

Question 8

Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

Accepted Answer

A) True 
 B)False

Question 9

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1  
- In Figure 17.1,the curve B indicates:

Accepted Answer

A) supply curve of land. 
B) marginal revenue product curve for land. 
C) value of marginal product curve of land. 
D) marginal factor cost curve of land. 
E) marginal product curve of land. 
A) supply curve of land. 
B) marginal revenue product curve for land. 
C) value of marginal product curve of land. 
D) marginal factor cost curve of land. 
E) marginal product curve of land.

Question 10

A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.

Accepted Answer

A) True 
 B)False

Question 11

For resources with vertical supply curves,earnings comprise of both economic rent and transfer earnings.

Accepted Answer

A) True 
 B)False

Question 12

The returns that skilled engineering professionals earn consist of both transfer earnings and economic rent.This implies:

Accepted Answer

A) demand for these professionals is highly elastic. 
B) the supply curve of skilled engineering professionals is upward-sloping. 
C) the supply curve of skilled engineering professionals is backward bending. 
D) demand for these professionals is perfectly inelastic. 
E) the supply curve of skilled engineering professionals is vertical. 
A) demand for these professionals is highly elastic. 
B) the supply curve of skilled engineering professionals is upward-sloping. 
C) the supply curve of skilled engineering professionals is backward bending. 
D) demand for these professionals is perfectly inelastic. 
E) the supply curve of skilled engineering professionals is vertical.

Question 13

If a nonrenewable resource is used more in the current period,the return on saving the resource for future falls.

Accepted Answer

A) True 
 B)False

Question 14

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1  
- In Figure 17.1,the curve A indicates:

Accepted Answer

A) demand curve for land. 
B) supply curve of land. 
C) marginal factor cost of land. 
D) marginal revenue product curve for land. 
E) value of marginal product curve of land. 
A) demand curve for land. 
B) supply curve of land. 
C) marginal factor cost of land. 
D) marginal revenue product curve for land. 
E) value of marginal product curve of land.

Question 15

Extraction of petroleum in the current period will shift the supply curve of petroleum outward in the future resulting in a fall in price of petroleum.

Accepted Answer

A) True 
 B)False

Which of the following is a nonrenewable source of energy?

The supply curve of land in the market for uses of land is:

Lack of well-defined ____ may cause market failures.

For any particular period of time,say a year,the supply of exhaustible resources:

Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource.

As extraction of a nonrenewable resource increases,the supply curve shifts up because:

When does the entire earning of a resource comprise of economic rent?

Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1 - In Figure 17.1,the curve B indicates:

A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.

For resources with vertical supply curves,earnings comprise of both economic rent and transfer earnings.

The returns that skilled engineering professionals earn consist of both transfer earnings and economic rent.This implies:

If a nonrenewable resource is used more in the current period,the return on saving the resource for future falls.

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1 - In Figure 17.1,the curve A indicates:

Extraction of petroleum in the current period will shift the supply curve of petroleum outward in the future resulting in a fall in price of petroleum.

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

Exam 17: The Land Market and Natural Resources

Which of the following is a nonrenewable source of energy?

The supply curve of land in the market for uses of land is:

Lack of well-defined ____ may cause market failures.

For any particular period of time,say a year,the supply of exhaustible resources:

Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource.

As extraction of a nonrenewable resource increases,the supply curve shifts up because:

When does the entire earning of a resource comprise of economic rent?

Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1 - In Figure 17.1,the curve B indicates:

A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.

For resources with vertical supply curves,earnings comprise of both economic rent and transfer earnings.

The returns that skilled engineering professionals earn consist of both transfer earnings and economic rent.This implies:

If a nonrenewable resource is used more in the current period,the return on saving the resource for future falls.

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose) is under consideration. Figure 17.1 - In Figure 17.1,the curve A indicates:

Extraction of petroleum in the current period will shift the supply curve of petroleum outward in the future resulting in a fall in price of petroleum.

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters