Question 1

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. A

Question 2

A rising standard of living will:

Accepted Answer

A)  necessarily reduce the population by reducing the birthrate. 
B)  increase the birthrate. 
C)  reduce the birthrate,but population may continue to grow if the death rate falls more quickly. 
D)  reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children. 
A)  necessarily reduce the population by reducing the birthrate. 
B)  increase the birthrate. 
C)  reduce the birthrate,but population may continue to grow if the death rate falls more quickly. 
D)  reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children. C

Question 3

Demographers expect world population to ultimately decline in the next century.

Accepted Answer

A) True 
 B)False  True

Question 4

(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 5

In fisheries management,ITQ stands for:

Accepted Answer

A)  international transferable quota. 
B)  individual transferable quota. 
C)  international tuna quotas. 
D)  individual trolling quotas. 
A)  international transferable quota. 
B)  individual transferable quota. 
C)  international tuna quotas. 
D)  individual trolling quotas.

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

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 8

Mining of "conflict diamonds" tends to:

Accepted Answer

A)  be more profitable as warring factions are willing to pay more for the diamonds. 
B)  occur at a slower pace than would maximize the long-term stream of profits because war increases extraction costs. 
C)  occur at a pace slower than would maximize the long-term stream of profits since the war disrupts production. 
D)  occur at a pace faster than would maximize the long-term stream of profits since warring factions extract diamonds as quickly as possible due to fears that they may soon lose control of the diamond mines. 
A)  be more profitable as warring factions are willing to pay more for the diamonds. 
B)  occur at a slower pace than would maximize the long-term stream of profits because war increases extraction costs. 
C)  occur at a pace slower than would maximize the long-term stream of profits since the war disrupts production. 
D)  occur at a pace faster than would maximize the long-term stream of profits since warring factions extract diamonds as quickly as possible due to fears that they may soon lose control of the diamond mines.

Question 9

Over the past decade,U.S.per capita consumption of water:

Accepted Answer

A)  and energy have both increased. 
B)  has increased,while per capita consumption of energy has fallen. 
C)  and energy have leveled off or fallen. 
D)  has fallen,while per capita consumption of energy has increased. 
A)  and energy have both increased. 
B)  has increased,while per capita consumption of energy has fallen. 
C)  and energy have leveled off or fallen. 
D)  has fallen,while per capita consumption of energy has increased.

Question 10

The Economist's Commodity Price Index reveals that the supply of productive resources has increased faster than the demand for decades.

Accepted Answer

A) True 
 B)False

Question 11

(Consider This)The tragedy of the commons occurs primarily:

Accepted Answer

A)  where government subsidies are present. 
B)  when incentives to preserve are strongest. 
C)  where property rights are lacking. 
D)  on privately held lands. 
A)  where government subsidies are present. 
B)  when incentives to preserve are strongest. 
C)  where property rights are lacking. 
D)  on privately held lands.

Question 12

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. Refer to the information given.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 13

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Accepted Answer

A) True 
 B)False

Question 14

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 continue 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 continue to increase rapidly.

Question 15

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 16

Since 1850,the:

Accepted Answer

A)  supply and demand for productive resources have grown at the same rate. 
B)  supply of productive resources has grown faster than the demand for those resources. 
C)  demand for productive resources has grown faster than the supply of those resources. 
D)  supply of productive resources has increased,while the demand has fallen. 
A)  supply and demand for productive resources have grown at the same rate. 
B)  supply of productive resources has grown faster than the demand for those resources. 
C)  demand for productive resources has grown faster than the supply of those resources. 
D)  supply of productive resources has increased,while the demand has fallen.

Question 17

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 these. 
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 these.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Renewable resources:

Accepted Answer

A)  can never be exhausted permanently. 
B)  can be exhausted if harvest rates exceed replenishment rates for an extended period. 
C)  can be exhausted if replenishment rates exceed harvest rates for an extended period. 
D)  will tend to be overharvested when they are private property. 
A)  can never be exhausted permanently. 
B)  can be exhausted if harvest rates exceed replenishment rates for an extended period. 
C)  can be exhausted if replenishment rates exceed harvest rates for an extended period. 
D)  will tend to be overharvested when they are private property.

Question 20

The user cost of extracting a nonrenewable resource is:

Accepted Answer

A)  the sum of the dollar expenditures incurred to extract the resource. 
B)  the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C)  the selling price of the resource to the companies using it to produce goods and services. 
D)  directly proportional to how much of the nonrenewable resource remains. 
A)  the sum of the dollar expenditures incurred to extract the resource. 
B)  the cost of not being able to extract it in the future if it is extracted and sold in the present. 
C)  the selling price of the resource to the companies using it to produce goods and services. 
D)  directly proportional to how much of the nonrenewable resource remains.

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

A rising standard of living will:

Demographers expect world population to ultimately decline in the next century.

(Last Word)Most economists view economic growth as:

In fisheries management,ITQ stands for:

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

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

Mining of "conflict diamonds" tends to:

Over the past decade,U.S.per capita consumption of water:

The Economist's Commodity Price Index reveals that the supply of productive resources has increased faster than the demand for decades.

(Consider This)The tragedy of the commons occurs primarily:

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Many demographers expect world population to:

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

Since 1850,the:

Rapid population growth since 1800 has occurred primarily because of:

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

Renewable resources:

The user cost of extracting a nonrenewable resource is:

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 Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

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

Filters

Exam 18: Natural Resource and Energy Economics

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

A rising standard of living will:

Demographers expect world population to ultimately decline in the next century.

(Last Word)Most economists view economic growth as:

In fisheries management,ITQ stands for:

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

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

Mining of "conflict diamonds" tends to:

Over the past decade,U.S.per capita consumption of water:

The Economist's Commodity Price Index reveals that the supply of productive resources has increased faster than the demand for decades.

(Consider This)The tragedy of the commons occurs primarily:

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Many demographers expect world population to:

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

Since 1850,the:

Rapid population growth since 1800 has occurred primarily because of:

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

Renewable resources:

The user cost of extracting a nonrenewable resource is:

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 Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

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

Filters