Question 1

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.

Question 2

An electricity company is considering damming a small river to generate electricity at a cost of $160,000 and a profit of $200,000 in 5 years. The current market rate is 5 percent. Should the company make the investment?

Accepted Answer

A)  Yes, the future value of the profit is greater than the present value of the cost. 
B)  No, the future value of the profit is less than the present value of the cost. 
C)  Yes, the present value of the profit is greater than the present value of the cost. 
D)  No, the present value of the profit is less than the present value of the cost. 
A)  Yes, the future value of the profit is greater than the present value of the cost. 
B)  No, the future value of the profit is less than the present value of the cost. 
C)  Yes, the present value of the profit is greater than the present value of the cost. 
D)  No, the present value of the profit is less than the present value of the cost.

Question 3

In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs," which refers to the cost of digging out the coal, running the mine, and transporting the coal.

Accepted Answer

A) True 
 B)False

Question 4

As of 2016, the world's population is approximately

Accepted Answer

A)  7.4 billion. 
B)  5.3 billion. 
C)  10 billion. 
D)  1.2 trillion. 
A)  7.4 billion. 
B)  5.3 billion. 
C)  10 billion. 
D)  1.2 trillion.

Question 5

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

Accepted Answer

A)  less than 1 birth per woman per lifetime. 
B)  equal to about 1 birth per woman per lifetime. 
C)  equal to about 1.5 births per woman per lifetime. 
D)  slightly more than 2 births per woman per lifetime. 
A)  less than 1 birth per woman per lifetime. 
B)  equal to about 1 birth per woman per lifetime. 
C)  equal to about 1.5 births per woman per lifetime. 
D)  slightly more than 2 births per woman per lifetime.

Question 6

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

Accepted Answer

A)  Japan 
B)  China 
C)  France 
D)  the United States 
A)  Japan 
B)  China 
C)  France 
D)  the United States

Question 7

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Accepted Answer

A)  more efficiently allocate resources. 
B)  overvalue future resources by considering them "priceless." 
C)  stop resource extraction. 
D)  extract and use resources as quickly as possible. 
A)  more efficiently allocate resources. 
B)  overvalue future resources by considering them "priceless." 
C)  stop resource extraction. 
D)  extract and use resources as quickly as possible.

Question 8

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 9

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Accepted Answer

A)  overuse of natural resources, leading to famines. 
B)  stable uses of natural resources, creating long-term stability. 
C)  efficient use of natural resources, fostering prosperity. 
D)  reduced dependence on natural resources, leading to growth. 
A)  overuse of natural resources, leading to famines. 
B)  stable uses of natural resources, creating long-term stability. 
C)  efficient use of natural resources, fostering prosperity. 
D)  reduced dependence on natural resources, leading to growth.

Question 10

Just over half (55 percent) of U.S. electricity is generated from

Accepted Answer

A)  hydroelectric. 
B)  petroleum. 
C)  nuclear energy. 
D)  coal and gas. 
A)  hydroelectric. 
B)  petroleum. 
C)  nuclear energy. 
D)  coal and gas.

Question 11

In modern economies, the cost of raising children has

Accepted Answer

A)  decreased because of laxer enforcement of laws that make child labor illegal. 
B)  increased because of stronger enforcement of laws that make child labor illegal. 
C)  increased because of fewer requirements for schooling until adulthood. 
D)  decreased because of more requirements for schooling until adulthood. 
A)  decreased because of laxer enforcement of laws that make child labor illegal. 
B)  increased because of stronger enforcement of laws that make child labor illegal. 
C)  increased because of fewer requirements for schooling until adulthood. 
D)  decreased because of more requirements for schooling until adulthood.

Question 12

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

Accepted Answer

A)  limiting the length of the catch season 
B)  limiting the number of boats allowed in a given area 
C)  limiting catch size (TA
C)  
D)  issuing individual transferable quotas (ITQs) 
A)  limiting the length of the catch season 
B)  limiting the number of boats allowed in a given area 
C)  limiting catch size (TA
C)  
D)  issuing individual transferable quotas (ITQs)

Question 13

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

Accepted Answer

A) True 
 B)False

Question 14

In time-value of money analysis, an increase in interest rates

Accepted Answer

A)  raises the present value of a future amount. 
B)  lowers the present value of a future amount. 
C)  lowers 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)  lowers the future value of a present amount. 
D)  has no effect on present or future amount.

Question 15

If the world begins to run out of oil, which of the following statements would be incorrect?

Accepted Answer

A)  The relative price of oil would become very high. 
B)  The world would run out of energy. 
C)  Alternative energy sources would become economically viable. 
D)  The cost of energy would rise. 
A)  The relative price of oil would become very high. 
B)  The world would run out of energy. 
C)  Alternative energy sources would become economically viable. 
D)  The cost of energy would rise.

Question 16

A fishery collapse occurs when the

Accepted Answer

A)  fishery goes out of business. 
B)  fishery is taken over by a government agency. 
C)  fishery's population is harvested at a higher rate than it reproduces. 
D)  fishery's population reproduces at a higher rate than it's harvested. 
A)  fishery goes out of business. 
B)  fishery is taken over by a government agency. 
C)  fishery's population is harvested at a higher rate than it reproduces. 
D)  fishery's population reproduces at a higher rate than it's harvested.

Question 17

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

Accepted Answer

A)  population in that country to rise over time. 
B)  population in that country to fall over time. 
C)  the replacement rate to also equal 1.8. 
D)  the population to remain stable over time. 
A)  population in that country to rise over time. 
B)  population in that country to fall over time. 
C)  the replacement rate to also equal 1.8. 
D)  the population to remain stable over time.

Question 18

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Accepted Answer

A)  Italy 
B)  United States 
C)  China 
D)  all of these nations 
A)  Italy 
B)  United States 
C)  China 
D)  all of these nations

Question 19

Average per capita water consumption in the United States was approximately how many gallons per day in 2010?

Accepted Answer

A)  355 
B)  764 
C)  1,941 
D)  1,134 
A)  355 
B)  764 
C)  1,941 
D)  1,134

Question 20

Recent studies indicate that as the price of a barrel of oil rises to $80, the use of biodiesel as an alternative fuel becomes economically viable.

Accepted Answer

A) True 
 B)False

Exam 19: Natural Resource and Energy Economics

Rapid population growth since 1800 has occurred primarily because of

An electricity company is considering damming a small river to generate electricity at a cost of $160,000 and a profit of $200,000 in 5 years. The current market rate is 5 percent. Should the company make the investment?

In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs," which refers to the cost of digging out the coal, running the mine, and transporting the coal.

As of 2016, the world's population is approximately

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

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

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Just over half (55 percent) of U.S. electricity is generated from

In modern economies, the cost of raising children has

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

In time-value of money analysis, an increase in interest rates

If the world begins to run out of oil, which of the following statements would be incorrect?

A fishery collapse occurs when the

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

Average per capita water consumption in the United States was approximately how many gallons per day in 2010?

Recent studies indicate that as the price of a barrel of oil rises to $80, the use of biodiesel as an alternative fuel becomes economically viable.

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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