Question 1

Renewable energy sources account for about 50 percent of U.S. electricity generation.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not considered by demographers to be part of the three-step demographic transition?

Accepted Answer

A)  simultaneous low birthrates and death rates 
B)  simultaneous high birthrates and death rates 
C)  low birthrates and high death rates 
D)  high birthrates and low death rates 
A)  simultaneous low birthrates and death rates 
B)  simultaneous high birthrates and death rates 
C)  low birthrates and high death rates 
D)  high birthrates and low death rates

Question 3

Many demographers expect world population to

Accepted Answer

A)  increase exponentially into the foreseeable future. 
B)  decline from its current level in the next two decades. 
C)  peak at 9 billion or fewer and then decline. 
D)  plateau at around 7.5 billion and then start to increase rapidly. 
A)  increase exponentially into the foreseeable future. 
B)  decline from its current level in the next two decades. 
C)  peak at 9 billion or fewer and then decline. 
D)  plateau at around 7.5 billion and then start to increase rapidly.

Question 4

The average person in the United States generates about 10 pounds of trash per day.

Accepted Answer

A) True 
 B)False

Question 5

(Last Word) Most economists view economic growth as

Accepted Answer

A)  good for the environment because richer economies spend more on environmental protection. 
B)  bad for the environment because richer economies extract resources at a faster rate. 
C)  good for the environment because richer economies produce fewer chemicals. 
D)  bad for the environment because people in richer economies tend to care less about the environment. 
A)  good for the environment because richer economies spend more on environmental protection. 
B)  bad for the environment because richer economies extract resources at a faster rate. 
C)  good for the environment because richer economies produce fewer chemicals. 
D)  bad for the environment because people in richer economies tend to care less about the environment.

Question 6

Per capita energy use in the United States has remained fairly constant since 1980.

Accepted Answer

A) True 
 B)False

Question 7

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

Accepted Answer

A) True 
 B)False

Question 8

Relative to 1800, today in the world there are

Accepted Answer

A)  more people but lower per-capita consumption. 
B)  more people but the same per-capita consumption. 
C)  more people and higher per-capita consumption. 
D)  the same number of people but higher per-capita consumption. 
A)  more people but lower per-capita consumption. 
B)  more people but the same per-capita consumption. 
C)  more people and higher per-capita consumption. 
D)  the same number of people but higher per-capita consumption.

Question 9

If the property rights for forests are clear and enforced, then

Accepted Answer

A)  they will become common property. 
B)  governments will not be able to overtax them. 
C)  owners have profit incentives to harvest slowly over time. 
D)  the logging of the forest will increase at an unsustainable rate. 
A)  they will become common property. 
B)  governments will not be able to overtax them. 
C)  owners have profit incentives to harvest slowly over time. 
D)  the logging of the forest will increase at an unsustainable rate.

Question 10

Commodity prices are relatively stable from year to year.

Accepted Answer

A) True 
 B)False

Question 11

(Consider This) Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

Accepted Answer

A)  Energy production with coal and gas generates less pollution. 
B)  Wind and solar energy availability is subject to large fluctuations because of the inability to store the power. 
C)  Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar. 
D)  Consumers are largely unwilling to buy power generated from wind and solar. 
A)  Energy production with coal and gas generates less pollution. 
B)  Wind and solar energy availability is subject to large fluctuations because of the inability to store the power. 
C)  Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar. 
D)  Consumers are largely unwilling to buy power generated from wind and solar.

Question 12

A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound. The current market rate of interest is 5 percent. The present value of this future extraction is

Accepted Answer

A)  $36. 
B)  $38. 
C)  $40. 
D)  $42. 
A)  $36. 
B)  $38. 
C)  $40. 
D)  $42.

Question 13

As nations become richer, they tend to pollute

Accepted Answer

A)  less and offer better protection for sensitive ecosystems. 
B)  less but offer worse protection for sensitive ecosystems. 
C)  more and offer worse protection for sensitive ecosystems. 
D)  more but offer better protection for sensitive ecosystems. 
A)  less and offer better protection for sensitive ecosystems. 
B)  less but offer worse protection for sensitive ecosystems. 
C)  more and offer worse protection for sensitive ecosystems. 
D)  more but offer better protection for sensitive ecosystems.

Question 14

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, what is the minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs?

Accepted Answer

A)  $8 
B)  $10 
C)  $20 
D)  $12 
A)  $8 
B)  $10 
C)  $20 
D)  $12

Question 15

Which of the following policies has succeeded in reducing fishery catch sizes?

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)  All of the other possible answers are correct. 
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)  All of the other possible answers are correct.

Question 16

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

Accepted Answer

A)  preserving elephants in Africa 
B)  drilling for oil in Saudi Arabia 
C)  mining of oil shale in Canada 
D)  hunting of deer in the United States 
A)  preserving elephants in Africa 
B)  drilling for oil in Saudi Arabia 
C)  mining of oil shale in Canada 
D)  hunting of deer in the United States

Question 17

In the United States in 2014, one million BTUs of energy yielded worth of goods and services (in 2009 dollars).

Accepted Answer

A)  $57.90 
B)  $63.09 
C)  $127.37 
D)  $162.07 
A)  $57.90 
B)  $63.09 
C)  $127.37 
D)  $162.07

Question 18

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 19

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

Accepted Answer

A)  It will be overlogged by loggers. 
B)  It will be underlogged by loggers. 
C)  It will be preserved for future use by loggers. 
D)  It will become the common property of the government. 
A)  It will be overlogged by loggers. 
B)  It will be underlogged by loggers. 
C)  It will be preserved for future use by loggers. 
D)  It will become the common property of the government.

Question 20

An oil company is considering drilling in the Gulf at a current cost of $300,000 with an expected profit of $500,000 in three years. The current market rate is 10 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.

Exam 19: Natural Resource and Energy Economics

Renewable energy sources account for about 50 percent of U.S. electricity generation.

Which of the following is not considered by demographers to be part of the three-step demographic transition?

Many demographers expect world population to

The average person in the United States generates about 10 pounds of trash per day.

(Last Word) Most economists view economic growth as

Per capita energy use in the United States has remained fairly constant since 1980.

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

Relative to 1800, today in the world there are

If the property rights for forests are clear and enforced, then

Commodity prices are relatively stable from year to year.

(Consider This) Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound. The current market rate of interest is 5 percent. The present value of this future extraction is

As nations become richer, they tend to pollute

Which of the following policies has succeeded in reducing fishery catch sizes?

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

In the United States in 2014, one million BTUs of energy yielded worth of goods and services (in 2009 dollars).

TAC policies help reduce overfishing and reduce costs for fishers.

What is most likely to happen when no logger owns the property rights to a forest that is open to logging?

An oil company is considering drilling in the Gulf at a current cost of $300,000 with an expected profit of $500,000 in three years. The current market rate is 10 percent. Should the company make the investment?

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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