Question 1

The optimal extraction level in the present for a nonrenewable resource is:

Accepted Answer

A)  zero. 
B)  where the market price of the resource equals the extraction cost of the last unit. 
C)  where the market price of the resource equals the extraction cost of the last unit plus the user cost of the last unit. 
D)  where the extraction cost of the last unit equals the user cost of the last unit. 
A)  zero. 
B)  where the market price of the resource equals the extraction cost of the last unit. 
C)  where the market price of the resource equals the extraction cost of the last unit plus the user cost of the last unit. 
D)  where the extraction cost of the last unit equals the user cost of the last unit.

Question 2

What is the relationship between living standards and birthrates?

Accepted Answer

A)  The relationship is negative at low levels of income but becomes increasingly positive as incomes rise. 
B)  They are unrelated. 
C)  The relationship is positive (directly related). 
D)  The relationship is negative (inversely related). 
A)  The relationship is negative at low levels of income but becomes increasingly positive as incomes rise. 
B)  They are unrelated. 
C)  The relationship is positive (directly related). 
D)  The relationship is negative (inversely related).

Question 3

A fishery collapse:

Accepted Answer

A)  necessarily happens when harvesting rates increase. 
B)  necessarily happens when reproduction rates fall. 
C)  occurs when harvesting outpaces reproduction for an extended period. 
D)  is irreversible. 
A)  necessarily happens when harvesting rates increase. 
B)  necessarily happens when reproduction rates fall. 
C)  occurs when harvesting outpaces reproduction for an extended period. 
D)  is irreversible.

Question 4

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Accepted Answer

A)  have been decimated as villagers try to maximize short-run profit. 
B)  have grown as villagers have protected the elephants to support their tourist industry. 
C)  have grown exponentially,with adverse environmental impacts. 
D)  are in serious decline as ivory prices have risen. 
A)  have been decimated as villagers try to maximize short-run profit. 
B)  have grown as villagers have protected the elephants to support their tourist industry. 
C)  have grown exponentially,with adverse environmental impacts. 
D)  are in serious decline as ivory prices have risen.

Question 5

Which of the following,in order,describes the three steps of the demographic transition?

Accepted Answer

A)  Low birthrates and death rates;high birthrates and low death rates;high birthrates and death rates. 
B)  High birthrates and death rates;low birthrates and high death rates;low birthrates and death rates. 
C)  High birthrates and low death rates;high birthrates and death rates;low birthrates and death rates. 
D)  High birthrates and death rates;high birthrates and low death rates;low birthrates and death rates. 
A)  Low birthrates and death rates;high birthrates and low death rates;high birthrates and death rates. 
B)  High birthrates and death rates;low birthrates and high death rates;low birthrates and death rates. 
C)  High birthrates and low death rates;high birthrates and death rates;low birthrates and death rates. 
D)  High birthrates and death rates;high birthrates and low death rates;low birthrates and death rates.

Question 6

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 11

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 12

(Consider This)Which of the following nations has implemented policies that pay women to have additional children?

Accepted Answer

A)  Russia. 
B)  France. 
C)  Italy. 
D)  All of these nations. 
A)  Russia. 
B)  France. 
C)  Italy. 
D)  All of these nations.

Question 13

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Accepted Answer

A)  different nations have different ethical views regarding treatment of the environment. 
B)  nations with increasing forest cover have poorly enforced or nonexistent property rights. 
C)  nations with declining forest cover treat forests as private property or strictly regulated government property. 
D)  nations with increasing forest cover treat forests as private property or strictly regulated government property. 
A)  different nations have different ethical views regarding treatment of the environment. 
B)  nations with increasing forest cover have poorly enforced or nonexistent property rights. 
C)  nations with declining forest cover treat forests as private property or strictly regulated government property. 
D)  nations with increasing forest cover treat forests as private property or strictly regulated government property.

Question 14

Extraction costs of a nonrenewable resource include the:

Accepted Answer

A)  cost of removal from the ground only. 
B)  cost of removal from the ground plus the cost of preparation for sale. 
C)  cost of removal from the ground,the cost of preparation for sale,and the cost of not being able to extract and sell the resource in the future. 
D)  cost of removal from the ground plus replanting costs. 
A)  cost of removal from the ground only. 
B)  cost of removal from the ground plus the cost of preparation for sale. 
C)  cost of removal from the ground,the cost of preparation for sale,and the cost of not being able to extract and sell the resource in the future. 
D)  cost of removal from the ground plus replanting costs.

Question 15

In fisheries management,a fishery is defined as:

Accepted Answer

A)  an operation that breeds and releases fish and other marine animals into the wild. 
B)  a stock of fish or other marine animals that can be thought of as a logically distinct group. 
C)  a company that harvests fish or other marine animals. 
D)  a government organization that regulates the harvesting of fish and other marine animals. 
A)  an operation that breeds and releases fish and other marine animals into the wild. 
B)  a stock of fish or other marine animals that can be thought of as a logically distinct group. 
C)  a company that harvests fish or other marine animals. 
D)  a government organization that regulates the harvesting of fish and other marine animals.

Question 16

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 17

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Accepted Answer

A) True 
 B)False

Question 18

Unless people can benefit from conservation,there is a temptation to:

Accepted Answer

A)  delay resource extraction as long as possible. 
B)  extract and use resources at a constant rate. 
C)  extract and use resources as quickly as possible. 
D)  ban the extraction of nonrenewable resources. 
A)  delay resource extraction as long as possible. 
B)  extract and use resources at a constant rate. 
C)  extract and use resources as quickly as possible. 
D)  ban the extraction of nonrenewable resources.

Question 19

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. Refer to the information given.The forest is more likely to be harvested and replanted at a sustainable rate if:

Accepted Answer

A)  property rights are well-defined and enforced. 
B)  property rights are weak or nonexistent. 
C)  there is no government protection of property rights and the parties can negotiate a settlement. 
D)  Ben is given sole ownership of the property. 
A)  property rights are well-defined and enforced. 
B)  property rights are weak or nonexistent. 
C)  there is no government protection of property rights and the parties can negotiate a settlement. 
D)  Ben is given sole ownership of the property.

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.

The optimal extraction level in the present for a nonrenewable resource is:

What is the relationship between living standards and birthrates?

A fishery collapse:

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Which of the following,in order,describes the three steps of the demographic transition?

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

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

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

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

TAC policies help reduce overfishing and reduce costs for fishers.

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

(Consider This)Which of the following nations has implemented policies that pay women to have additional children?

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Extraction costs of a nonrenewable resource include the:

In fisheries management,a fishery is defined as:

World commodity prices over the past 150 years have:

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Unless people can benefit from conservation,there is a temptation 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 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

The optimal extraction level in the present for a nonrenewable resource is:

What is the relationship between living standards and birthrates?

A fishery collapse:

In countries like Botswana and Zimbabwe,local villages have been given property rights over local elephants with the result that elephant populations:

Which of the following,in order,describes the three steps of the demographic transition?

A British thermal unit is the amount of energy required to raise the temperature of one liter of water by one degree Celsius.

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

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

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

TAC policies help reduce overfishing and reduce costs for fishers.

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

(Consider This)Which of the following nations has implemented policies that pay women to have additional children?

Some nations are increasing the amount of land covered by forests,while others are experiencing rapid deforestation.According to economists,this is largely because:

Extraction costs of a nonrenewable resource include the:

In fisheries management,a fishery is defined as:

World commodity prices over the past 150 years have:

Fisheries have been overexploited relative to forests primarily because people care more about trees than fish.

Unless people can benefit from conservation,there is a temptation 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 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