Question 1

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

Accepted Answer

A) True 
 B)False

Question 2

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 3

"Conflict diamonds" refer to the diamonds

Accepted Answer

A)  that were stolen by the Nazis in WWII and are now reclaimed by the true owners. 
B)  mined by combatants in war zones in Africa. 
C)  whose authenticity is contested by experts in the industry. 
D)  over which major rivals are heatedly bidding against one another in the auction markets. 
A)  that were stolen by the Nazis in WWII and are now reclaimed by the true owners. 
B)  mined by combatants in war zones in Africa. 
C)  whose authenticity is contested by experts in the industry. 
D)  over which major rivals are heatedly bidding against one another in the auction markets.

Question 4

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

Accepted Answer

A)  total fertility rate is higher than the replacement rate. 
B)  total fertility rate is below the replacement rate. 
C)  fertility rate and the replacement rate are about equal. 
D)  fertility rate divided by the replacement rate is greater than one. 
A)  total fertility rate is higher than the replacement rate. 
B)  total fertility rate is below the replacement rate. 
C)  fertility rate and the replacement rate are about equal. 
D)  fertility rate divided by the replacement rate is greater than one.

Question 5

Data from the U.S. Environmental Protection Agency on per capita trash generation in the United States indicate that since 1990 it has

Accepted Answer

A)  increased moderately. 
B)  continually decreased. 
C)  more or less leveled off. 
D)  sharply increased. 
A)  increased moderately. 
B)  continually decreased. 
C)  more or less leveled off. 
D)  sharply increased.

Question 6

(Consider This) Governments' main economic concern about low birthrates is that

Accepted Answer

A)  in a few decades, there will not be enough working-age adults to support pension responsibilities to retirees. 
B)  the smaller population makes the economy more vulnerable to foreign takeover. 
C)  a declining population will reduce worker productivity. 
D)  smaller populations are more susceptible to epidemics. 
A)  in a few decades, there will not be enough working-age adults to support pension responsibilities to retirees. 
B)  the smaller population makes the economy more vulnerable to foreign takeover. 
C)  a declining population will reduce worker productivity. 
D)  smaller populations are more susceptible to epidemics.

Question 7

In countries like Botswana and Zimbabwe, local villages have been given property rights over local elephants with the result that elephant populations

Accepted Answer

A)  have been decimated as villagers try to maximize short-run profit. 
B)  have grown as villagers have protected the elephants to support their tourist industry. 
C)  have grown exponentially, with adverse environmental impacts. 
D)  are in serious decline, as ivory prices have risen. 
A)  have been decimated as villagers try to maximize short-run profit. 
B)  have grown as villagers have protected the elephants to support their tourist industry. 
C)  have grown exponentially, with adverse environmental impacts. 
D)  are in serious decline, as ivory prices have risen.

Question 8

Overextraction of a resource in the present can occur because

Accepted Answer

A)  there is a user cost. 
B)  there is an extraction cost. 
C)  users can benefit from conservation. 
D)  property rights are not clearly defined. 
A)  there is a user cost. 
B)  there is an extraction cost. 
C)  users can benefit from conservation. 
D)  property rights are not clearly defined.

Question 9

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2014?

Accepted Answer

A)  blue crab 
B)  Pacific cod 
C)  oysters 
D)  lobster 
A)  blue crab 
B)  Pacific cod 
C)  oysters 
D)  lobster

Question 10

A company's extraction cost curve slopes upward to reflect

Accepted Answer

A)  that marginal extraction costs increase as the company extracts more of the resource. 
B)  that user costs rise as the company extracts more of the resource. 
C)  that the price of the nonrenewable resource increases as the amount extracted increases. 
D)  all of these. 
A)  that marginal extraction costs increase as the company extracts more of the resource. 
B)  that user costs rise as the company extracts more of the resource. 
C)  that the price of the nonrenewable resource increases as the amount extracted increases. 
D)  all of these.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Renewable resources

Accepted Answer

A)  can never be exhausted permanently. 
B)  can be exhausted if harvest rates exceed replenishment rates for an extended period. 
C)  can be exhausted if replenishment rates exceed harvest rates for an extended period. 
D)  will tend to be overharvested when they are private property. 
A)  can never be exhausted permanently. 
B)  can be exhausted if harvest rates exceed replenishment rates for an extended period. 
C)  can be exhausted if replenishment rates exceed harvest rates for an extended period. 
D)  will tend to be overharvested when they are private property.

Question 13

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

Accepted Answer

A)  low price of conventional energy 
B)  taxes on alternative energy 
C)  government subsidies for alternative energy 
D)  high production costs of alternative energy 
A)  low price of conventional energy 
B)  taxes on alternative energy 
C)  government subsidies for alternative energy 
D)  high production costs of alternative energy

Question 14

When diamonds are mined in conflict or war-torn areas, there is

Accepted Answer

A)  more loss from auctioning off the resource. 
B)  minimal waste of this resource. 
C)  strong incentive for conservation. 
D)  strong incentive for overmining. 
A)  more loss from auctioning off the resource. 
B)  minimal waste of this resource. 
C)  strong incentive for conservation. 
D)  strong incentive for overmining.

Question 15

According to the concept of demographic transition,

Accepted Answer

A)  population growth rates should slow as nations move into the final stage. 
B)  population growth rates should rise as nations move into the final stage. 
C)  population growth becomes exponential when nations are in the final stage. 
D)  population plummets in the transition phase. 
A)  population growth rates should slow as nations move into the final stage. 
B)  population growth rates should rise as nations move into the final stage. 
C)  population growth becomes exponential when nations are in the final stage. 
D)  population plummets in the transition phase.

Question 16

In 2014, the primary sources of U.S. electricity generation, in order from largest to smallest, were

Accepted Answer

A)  natural gas, coal, petroleum, and nuclear. 
B)  natural gas, hydropower, nuclear, and renewables (wind and solar). 
C)  coal, natural gas, nuclear, and hydropower. 
D)  hydropower, nuclear, coal, and petroleum. 
A)  natural gas, coal, petroleum, and nuclear. 
B)  natural gas, hydropower, nuclear, and renewables (wind and solar). 
C)  coal, natural gas, nuclear, and hydropower. 
D)  hydropower, nuclear, coal, and petroleum.

Question 17

According to U.S. Geological Survey data from 1950 to 2010, total water use in the United States has

Accepted Answer

A)  continually increased. 
B)  continually decreased. 
C)  increased and then leveled off. 
D)  decreased and then leveled off. 
A)  continually increased. 
B)  continually decreased. 
C)  increased and then leveled off. 
D)  decreased and then leveled off.

Question 18

Energy demand is relatively stable over the course of a day.

Accepted Answer

A) True 
 B)False

Question 19

Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. If property rights are well-defined and enforced,

Accepted Answer

A)  Alex could buy Ben's part of the land and harvest and replant in a sustainable manner. 
B)  Ben could buy Alex's part of the land and harvest all the timber as quickly as possible. 
C)  Incentives to harvest and replant in a sustainable manner are greater than with no property rights. 
D)  Any of the results described in the other possible answers could occur in this situation. 
A)  Alex could buy Ben's part of the land and harvest and replant in a sustainable manner. 
B)  Ben could buy Alex's part of the land and harvest all the timber as quickly as possible. 
C)  Incentives to harvest and replant in a sustainable manner are greater than with no property rights. 
D)  Any of the results described in the other possible answers could occur in this situation.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

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

"Conflict diamonds" refer to the diamonds

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

Data from the U.S. Environmental Protection Agency on per capita trash generation in the United States indicate that since 1990 it has

(Consider This) Governments' main economic concern about low birthrates is that

In countries like Botswana and Zimbabwe, local villages have been given property rights over local elephants with the result that elephant populations

Overextraction of a resource in the present can occur because

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2014?

A company's extraction cost curve slopes upward to reflect

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

Renewable resources

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

When diamonds are mined in conflict or war-torn areas, there is

According to the concept of demographic transition,

In 2014, the primary sources of U.S. electricity generation, in order from largest to smallest, were

According to U.S. Geological Survey data from 1950 to 2010, total water use in the United States has

Energy demand is relatively stable over the course of a day.

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

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role 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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