Exam 19: Natural Resource and Energy Economics

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 $28. If the market price of Pacific halibut is $40 per ton, and Melanie and Oli both catch their quota, their combined profit will be

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

In 2014, according to U.S. Energy Information Administration data, which of the following sources of energy contributed the smallest share to U.S. electricity generation?

Increases in U.S. living standards have matched increases in per capita energy use.

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

Over the past two decades, total and per capita water use in the United States have

Individual transferable quotas (ITQs)

A BTU is the amount of energy needed to

ITQs generate the most efficient use of resources when everyone keeps and fills their own quotas.

Demographers expect world population to peak and then decline in the twenty-first century.