Question 1

Present value allows us to weigh the benefits and costs of using resources today or in the future.

Accepted Answer

A) True 
 B)False

Question 2

Population will necessarily fall if the

Accepted Answer

A)  birthrate exceeds the replacement rate. 
B)  replacement rate exceeds the birthrate. 
C)  birthrate exceeds the total fertility rate. 
D)  total fertility rate exceeds the birthrate. 
A)  birthrate exceeds the replacement rate. 
B)  replacement rate exceeds the birthrate. 
C)  birthrate exceeds the total fertility rate. 
D)  total fertility rate exceeds the birthrate.

Question 3

Relative to 1800, the living standard of the average person today in the United States is about times higher.

Accepted Answer

A)  5 
B)  12 
C)  20 
D)  42 
A)  5 
B)  12 
C)  20 
D)  42

Question 4

It is generally easier to prevent deforestation than fishery collapse because

Accepted Answer

A)  it is easier to establish and enforce property rights on national lands than in international waters. 
B)  there is greater incentive to have sustainable forests than sustainable fisheries. 
C)  the demand for wood products has dropped significantly, while the demand for fish has grown significantly. 
D)  All of the other possible answers are correct. 
A)  it is easier to establish and enforce property rights on national lands than in international waters. 
B)  there is greater incentive to have sustainable forests than sustainable fisheries. 
C)  the demand for wood products has dropped significantly, while the demand for fish has grown significantly. 
D)  All of the other possible answers are correct.

Question 5

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. Assume that the market price of Pacific halibut is $40 per ton. If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit of 2,000 tons, their combined profit would be

Accepted Answer

A)  $28,000. 
B)  $32,000. 
C)  $40,000. 
D)  $54,000. 
A)  $28,000. 
B)  $32,000. 
C)  $40,000. 
D)  $54,000.

Question 6

Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $8; Kyle's cost per ton is $12. If the market price of sockeye salmon is $15 per ton, what is the maximum amount Kara would be willing to pay per ton for Kyle's ITQs?

Accepted Answer

A)  $3 
B)  $7 
C)  $8 
D)  $15 
A)  $3 
B)  $7 
C)  $8 
D)  $15

Question 7

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Accepted Answer

A)  $60 
B)  $80 
C)  $100 
D)  $120 
A)  $60 
B)  $80 
C)  $100 
D)  $120

Question 8

The era after the Industrial Revolution proved that it was impossible to have improved standards of living with large population growth.

Accepted Answer

A) True 
 B)False

Question 9

A fishery is typically identified by

Accepted Answer

A)  location and size. 
B)  location and species. 
C)  species and size. 
D)  species and market value. 
A)  location and size. 
B)  location and species. 
C)  species and size. 
D)  species and market value.

Question 10

World commodity prices over the past 150 years have

Accepted Answer

A)  steadily decreased in both the short run and long run. 
B)  decreased in the long run despite occasional short-run increases. 
C)  remained constant in the long run despite occasional short-run fluctuations. 
D)  steadily increased in both the short run and long run. 
A)  steadily decreased in both the short run and long run. 
B)  decreased in the long run despite occasional short-run increases. 
C)  remained constant in the long run despite occasional short-run fluctuations. 
D)  steadily increased in both the short run and long run.

Question 11

The United States produces more than twice as much output per million BTUs of energy consumed as it did in 1950.

Accepted Answer

A) True 
 B)False

Question 12

In the case of conflict diamonds, the strict enforcement of property rights has led to too fast of a rate of extraction.

Accepted Answer

A) True 
 B)False

Question 13

In electricity generation, it is most economically efficient to use a single energy source.

Accepted Answer

A) True 
 B)False

Question 14

Better technology means that more output in the U.S. economy can be produced

Accepted Answer

A)  with a greater amount of energy input. 
B)  with the same amount of energy input. 
C)  but it will lead to a fall in the standard of living. 
D)  but it will lead to a rise in population growth. 
A)  with a greater amount of energy input. 
B)  with the same amount of energy input. 
C)  but it will lead to a fall in the standard of living. 
D)  but it will lead to a rise in population growth.

Question 15

The key difficulty with fishery management is that

Accepted Answer

A)  the only way to establish property rights over a fish swimming in the ocean is to catch and kill it. 
B)  fishery management deals with live resources while forestry does not. 
C)  it deals with a nonrenewable resource. 
D)  there are so many types of fish, and they're found in so many locations. 
A)  the only way to establish property rights over a fish swimming in the ocean is to catch and kill it. 
B)  fishery management deals with live resources while forestry does not. 
C)  it deals with a nonrenewable resource. 
D)  there are so many types of fish, and they're found in so many locations.

Question 16

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

Accepted Answer

A)  petroleum 
B)  nuclear 
C)  hydropower 
D)  natural gas 
A)  petroleum 
B)  nuclear 
C)  hydropower 
D)  natural gas

Question 17

The Economist magazine's Commodities Price Index tracks the prices of the most

Accepted Answer

A)  important finished goods that are traded internationally. 
B)  important minerals that are traded internationally. 
C)  important productive resources that are traded internationally. 
D)  heavily traded agricultural-based products. 
A)  important finished goods that are traded internationally. 
B)  important minerals that are traded internationally. 
C)  important productive resources that are traded internationally. 
D)  heavily traded agricultural-based products.

Question 18

The total fertility rate necessary to keep the population constant is approximately equal to

Accepted Answer

A)  1.0. 
B)  1.5. 
C)  2.1. 
D)  3.0. 
A)  1.0. 
B)  1.5. 
C)  2.1. 
D)  3.0.

Question 19

A Middle Eastern country has an oil reserve that it can extract for a profit of $60 a barrel today, $65 a barrel in two years, $70 a barrel in three years, and $75 in four years. The current market rate of interest is 7 percent. When should this country tap into its oil reserve to obtain the most profit per barrel in present value terms?

Accepted Answer

A)  today 
B)  two years 
C)  three years 
D)  four years 
A)  today 
B)  two years 
C)  three years 
D)  four years

Question 20

Alternative fuels become more economically viable as

Accepted Answer

A)  the demand for oil decreases. 
B)  subsidies for alternative fuels are removed. 
C)  oil exploration and drilling technology improve. 
D)  the price of oil rises. 
A)  the demand for oil decreases. 
B)  subsidies for alternative fuels are removed. 
C)  oil exploration and drilling technology improve. 
D)  the price of oil rises.

Exam 19: Natural Resource and Energy Economics

Present value allows us to weigh the benefits and costs of using resources today or in the future.

Population will necessarily fall if the

Relative to 1800, the living standard of the average person today in the United States is about times higher.

It is generally easier to prevent deforestation than fishery collapse because

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

The era after the Industrial Revolution proved that it was impossible to have improved standards of living with large population growth.

A fishery is typically identified by

World commodity prices over the past 150 years have

The United States produces more than twice as much output per million BTUs of energy consumed as it did in 1950.

In the case of conflict diamonds, the strict enforcement of property rights has led to too fast of a rate of extraction.

In electricity generation, it is most economically efficient to use a single energy source.

Better technology means that more output in the U.S. economy can be produced

The key difficulty with fishery management is that

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

The Economist magazine's Commodities Price Index tracks the prices of the most

The total fertility rate necessary to keep the population constant is approximately equal to

Alternative fuels become more economically viable as

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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