Question 1

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

Accepted Answer

A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  There is no step that would be expected to consistently yield faster population growth. 
A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  There is no step that would be expected to consistently yield faster population growth.

Question 2

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Accepted Answer

A)  Thailand 
B)  Puerto Rico 
C)  Nigeria 
D)  United States 
A)  Thailand 
B)  Puerto Rico 
C)  Nigeria 
D)  United States

Question 3

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

Accepted Answer

A) True 
 B)False

Question 4

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

Accepted Answer

A)  the United States and Tanzania. 
B)  Switzerland and Latvia. 
C)  New Zealand and Sweden. 
D)  Brazil and Australia. 
A)  the United States and Tanzania. 
B)  Switzerland and Latvia. 
C)  New Zealand and Sweden. 
D)  Brazil and Australia.

Question 5

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

Accepted Answer

A) True 
 B)False

Question 6

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Accepted Answer

A) True 
 B)False

Question 7

If per capita trash generation is constant over time, this implies that

Accepted Answer

A)  per capita consumption of solids has also been constant. 
B)  per capita consumption of goods and services has also been constant. 
C)  total consumption of solids has also been constant. 
D)  total consumption of goods and services has also been constant. 
A)  per capita consumption of solids has also been constant. 
B)  per capita consumption of goods and services has also been constant. 
C)  total consumption of solids has also been constant. 
D)  total consumption of goods and services has also been constant.

Question 8

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 9

(Consider This) The tragedy of the commons occurs primarily

Accepted Answer

A)  where government subsidies are present. 
B)  when incentives to preserve are strongest. 
C)  where property rights are lacking. 
D)  on privately held lands. 
A)  where government subsidies are present. 
B)  when incentives to preserve are strongest. 
C)  where property rights are lacking. 
D)  on privately held lands.

Question 10

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

Accepted Answer

A)  selling price of the resource equals the extraction cost plus the user cost of the resource. 
B)  selling price of the resource equals the total cost plus the user cost of the resource. 
C)  selling price of the resource equals the extraction cost of the resource. 
D)  extraction cost of the resource equals the user cost of the resource. 
A)  selling price of the resource equals the extraction cost plus the user cost of the resource. 
B)  selling price of the resource equals the total cost plus the user cost of the resource. 
C)  selling price of the resource equals the extraction cost of the resource. 
D)  extraction cost of the resource equals the user cost of the resource.

Question 11

The key demand-side factors that cause the depletion of finite natural resources are

Accepted Answer

A)  population and productivity. 
B)  productivity and per capita consumption. 
C)  per capita consumption and efficiency. 
D)  population and per capita consumption. 
A)  population and productivity. 
B)  productivity and per capita consumption. 
C)  per capita consumption and efficiency. 
D)  population and per capita consumption.

Question 12

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 13

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

Accepted Answer

A)  a reduction in extraction costs 
B)  a reduction in user costs 
C)  a reduction in total costs 
D)  a reduction in the price of the resource 
A)  a reduction in extraction costs 
B)  a reduction in user costs 
C)  a reduction in total costs 
D)  a reduction in the price of the resource

Question 14

The period since the Industrial Revolution has been extraordinary because, despite unprecedented

Accepted Answer

A)  population growth, there has been a substantial increase in the standard of living in industrialized nations. 
B)  population growth, there has been a substantial decrease in the productivity in industrialized nations. 
C)  declines in economic efficiency, there has been a rise in the standard of living in industrialized nations. 
D)  declines in economic efficiency, there has been a rise in population growth in industrialized nations. 
A)  population growth, there has been a substantial increase in the standard of living in industrialized nations. 
B)  population growth, there has been a substantial decrease in the productivity in industrialized nations. 
C)  declines in economic efficiency, there has been a rise in the standard of living in industrialized nations. 
D)  declines in economic efficiency, there has been a rise in population growth in industrialized nations.

Question 15

Fish in the open ocean are protected by strong property rights.

Accepted Answer

A) True 
 B)False

Question 16

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

Accepted Answer

A) True 
 B)False

Question 17

With modernization, the world's population will continue to decline even as many countries experience declining death rates.

Accepted Answer

A) True 
 B)False

Question 18

Extraction costs of a nonrenewable resource include the

Accepted Answer

A)  cost of removal from the ground only. 
B)  cost of removal from the ground plus the cost of preparation for sale. 
C)  cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future. 
D)  cost of removal from the ground plus replanting costs. 
A)  cost of removal from the ground only. 
B)  cost of removal from the ground plus the cost of preparation for sale. 
C)  cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future. 
D)  cost of removal from the ground plus replanting costs.

Question 19

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 19: Natural Resource and Energy Economics

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

According to data from the UN Food and Agriculture Organization, which of the following nations saw a significant decline in the amount of land covered by forests in the period 2010-2015?

Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs.

(Last Word) In 2012, the countries with the highest scores on the Environmental Performance Index were

The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production.

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

If per capita trash generation is constant over time, this implies that

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

(Consider This) The tragedy of the commons occurs primarily

A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the

The key demand-side factors that cause the depletion of finite natural resources are

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

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

The period since the Industrial Revolution has been extraordinary because, despite unprecedented

Fish in the open ocean are protected by strong property rights.

If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future.

With modernization, the world's population will continue to decline even as many countries experience declining death rates.

Extraction costs of a nonrenewable resource include the

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

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

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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