Question 1

What was the largest U.S. fishery, in dollar terms, in 2014?

Accepted Answer

A)  Pacific halibut 
B)  sea scallop 
C)  walleye pollock 
D)  lobster 
A)  Pacific halibut 
B)  sea scallop 
C)  walleye pollock 
D)  lobster

Question 2

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 minimum amount per ton that Kara would have to offer Kyle to convince him to sell Kara his ITQs?

Accepted Answer

A)  $3 
B)  $4 
C)  $5 
D)  $7 
A)  $3 
B)  $4 
C)  $5 
D)  $7

Question 3

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A)  solar power 
B)  coal 
C)  oceans 
D)  aquifers 
A)  solar power 
B)  coal 
C)  oceans 
D)  aquifers

Question 4

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Accepted Answer

A)  GDP rises, EPI score falls. 
B)  GDP rises, EPI score rises. 
C)  GDP falls, EPI score rises. 
D)  GDP falls, EPI score stays relatively constant. 
A)  GDP rises, EPI score falls. 
B)  GDP rises, EPI score rises. 
C)  GDP falls, EPI score rises. 
D)  GDP falls, EPI score stays relatively constant.

Question 5

A fishery is a stock of fish or other marine animal thought of as a logically distinct group and usually identified by its location and species.

Accepted Answer

A) True 
 B)False

Question 6

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

Accepted Answer

A) True 
 B)False

Question 7

About one-half of U.S. electricity is generated using petroleum.

Accepted Answer

A) True 
 B)False

Question 8

The higher a resource's current price, the more extraction should be delayed to a later period.

Accepted Answer

A) True 
 B)False

Question 9

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Accepted Answer

A)  not changed. 
B)  more than doubled. 
C)  risen about 50 percent. 
D)  risen more than threefold. 
A)  not changed. 
B)  more than doubled. 
C)  risen about 50 percent. 
D)  risen more than threefold.

Question 10

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Accepted Answer

A)  renewable natural resources. 
B)  natural capital. 
C)  nonrenewable natural resources. 
D)  fossil fuels. 
A)  renewable natural resources. 
B)  natural capital. 
C)  nonrenewable natural resources. 
D)  fossil fuels.

Question 11

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

Accepted Answer

A) True 
 B)False

Question 12

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Accepted Answer

A) True 
 B)False

Question 13

The amount of land covered by forests is

Accepted Answer

A)  declining in all nations. 
B)  increasing in all nations. 
C)  increasing in places like the United States and Western Europe, while declining in countries in South America. 
D)  declining in places like the United States and Western Europe, while increasing in countries in South America. 
A)  declining in all nations. 
B)  increasing in all nations. 
C)  increasing in places like the United States and Western Europe, while declining in countries in South America. 
D)  declining in places like the United States and Western Europe, while increasing in countries in South America.

Question 14

Forestry companies typically harvest and replant an area when trees are

Accepted Answer

A)  very young and growing slowly. 
B)  middle aged and growing rapidly. 
C)  near the end of their rapid-growth period. 
D)  extremely old and about to die anyway. 
A)  very young and growing slowly. 
B)  middle aged and growing rapidly. 
C)  near the end of their rapid-growth period. 
D)  extremely old and about to die anyway.

Question 15

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 maximum amount Melanie would be willing to pay per ton for Oli's ITQs?

Accepted Answer

A)  $20 
B)  $28 
C)  $40 
D)  $12 
A)  $20 
B)  $28 
C)  $40 
D)  $12

Question 16

The United States is in imminent danger of running out of energy.

Accepted Answer

A) True 
 B)False

Question 17

Elephant populations have

Accepted Answer

A)  expanded everywhere because of state control of elephant populations. 
B)  declined in countries where they are owned by local villages and expanded where they are owned by the state. 
C)  expanded in countries where they are owned by local villages and declined where they are owned by the state. 
D)  declined everywhere, regardless of whether property rights over elephants are recognized. 
A)  expanded everywhere because of state control of elephant populations. 
B)  declined in countries where they are owned by local villages and expanded where they are owned by the state. 
C)  expanded in countries where they are owned by local villages and declined where they are owned by the state. 
D)  declined everywhere, regardless of whether property rights over elephants are recognized.

Question 18

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Accepted Answer

A)  reduce extraction in the present. 
B)  increase the current rate of extraction. 
C)  invest in less extraction equipment. 
D)  hire more workers to support current production. 
A)  reduce extraction in the present. 
B)  increase the current rate of extraction. 
C)  invest in less extraction equipment. 
D)  hire more workers to support current production.

Question 19

Malthus argued that any increase in living standards would cause a decrease in population growth.

Accepted Answer

A) True 
 B)False

Question 20

Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. If no explicit property right is given over the forest land, then

Accepted Answer

A)  a property right will be established when trees are cut down and brought to market. 
B)  there is no property right over the harvested timber. 
C)  Alex and Ben will likely work out an agreement on harvesting and replanting the land. 
D)  that implies that government owns and regulates its use. 
A)  a property right will be established when trees are cut down and brought to market. 
B)  there is no property right over the harvested timber. 
C)  Alex and Ben will likely work out an agreement on harvesting and replanting the land. 
D)  that implies that government owns and regulates its use.

Exam 19: Natural Resource and Energy Economics

What was the largest U.S. fishery, in dollar terms, in 2014?

Which of the following is considered a nonrenewable natural resource?

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

A fishery is a stock of fish or other marine animal thought of as a logically distinct group and usually identified by its location and species.

The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.

About one-half of U.S. electricity is generated using petroleum.

The higher a resource's current price, the more extraction should be delayed to a later period.

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

The amount of land covered by forests is

Forestry companies typically harvest and replant an area when trees are

The United States is in imminent danger of running out of energy.

Elephant populations have

An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to

Malthus argued that any increase in living standards would cause a decrease in population growth.

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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