Question 1

If per capita trash generation is constant over time,this implies that:

Accepted Answer

A)  per capita consumption of solids has also been constant. 
B)  per capita consumption of goods and services has also been constant. 
C)  total consumption of solids has also been constant. 
D)  total consumption of goods and services has also been constant. 
A)  per capita consumption of solids has also been constant. 
B)  per capita consumption of goods and services has also been constant. 
C)  total consumption of solids has also been constant. 
D)  total consumption of goods and services has also been constant.

Question 2

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. Refer to the information given and 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)  $30,000. 
D)  $54,000. 
A)  $28,000. 
B)  $32,000. 
C)  $30,000. 
D)  $54,000.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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. Refer to the information given.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 5

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

Accepted Answer

A)  Italy. 
B)  United States. 
C)  China. 
D)  All of these nations. 
A)  Italy. 
B)  United States. 
C)  China. 
D)  All of these nations.

Question 6

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.If property rights are poorly enforced or nonexistent:

Accepted Answer

A)  Ben will choose to harvest as quickly as possible,but Alex will choose to harvest more slowly and replant. 
B)  both will harvest trees as quickly as possible,before the other one does. 
C)  both now have an incentive to harvest and replant in a sustainable manner. 
D)  we would expect them to form an agreement on harvesting and replanting. 
A)  Ben will choose to harvest as quickly as possible,but Alex will choose to harvest more slowly and replant. 
B)  both will harvest trees as quickly as possible,before the other one does. 
C)  both now have an incentive to harvest and replant in a sustainable manner. 
D)  we would expect them to form an agreement on harvesting and replanting.

Question 7

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 8

(Consider This)Governments' main economic concern about low birthrates is that:

Accepted Answer

A)  in a few decades there will not be enough working-age adults to support pension responsibilities to retirees. 
B)  the smaller population makes the economy more vulnerable to foreign takeover. 
C)  a declining population will reduce worker productivity. 
D)  smaller populations are more susceptible to epidemics. 
A)  in a few decades there will not be enough working-age adults to support pension responsibilities to retirees. 
B)  the smaller population makes the economy more vulnerable to foreign takeover. 
C)  a declining population will reduce worker productivity. 
D)  smaller populations are more susceptible to epidemics.

Question 9

The table below shows the quantity of gold bars (Qb)in thousands,the extraction cost for each thousand bars (in millions of dollars),and the user cost of each thousand bars (in millions of dollars)facing the OZ Mining Company this year. $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Quantity of Gold Bars } \
\text { (in thousands) }\
\hline
\end{array} & \begin{array} { c } 
\text { Extraction Cost } \
\text { (in millions of dollars) }\
\hline
\end{array} & \begin{array} { c } 
\text { User Cost } \
\text { (in millions of dollars) }\
\hline
\end{array} \
0 & \$ 10 & \$ 5 \
1 & 15 & 5 \
2 & 20 & 5 \
3 & 25 & 5 \
4 & 30 & 5 \
5 & 35 & 5
\end{array}$$ Refer to the data.If the current price of a bar of gold is $25,000,how many bars (in thousands)should OZ extract and sell this year in order to maximize profits?

Accepted Answer

A)  1. 
B)  2. 
C)  3. 
D)  4. 
A)  1. 
B)  2. 
C)  3. 
D)  4.

Question 10

A user cost of zero implies that:

Accepted Answer

A)  a firm will extract all of a resource in the present. 
B)  a firm will extract resources at a faster rate than if the user cost was positive. 
C)  a firm will extract resources at a faster rate than if the user cost was negative. 
D)  the price of the resource will not change. 
A)  a firm will extract all of a resource in the present. 
B)  a firm will extract resources at a faster rate than if the user cost was positive. 
C)  a firm will extract resources at a faster rate than if the user cost was negative. 
D)  the price of the resource will not change.

Question 11

Why have commodity prices fallen since 1850?

Accepted Answer

A)  The demand for productive resources has fallen faster than the supply of those resources. 
B)  The demand for productive resources has grown faster than the supply of those resources. 
C)  The supply of productive resources has increased,while the demand has fallen. 
D)  The supply of productive resources has grown faster than the demand for those resources. 
A)  The demand for productive resources has fallen faster than the supply of those resources. 
B)  The demand for productive resources has grown faster than the supply of those resources. 
C)  The supply of productive resources has increased,while the demand has fallen. 
D)  The supply of productive resources has grown faster than the demand for those resources.

Question 12

The table below shows the quantity of gold bars (Qb)in thousands,the extraction cost for each thousand bars (in millions of dollars),and the user cost of each thousand bars (in millions of dollars)facing the OZ Mining Company this year. $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Quantity of Gold Bars } \
\text { (in thousands) }\
\hline
\end{array} & \begin{array} { c } 
\text { Extraction Cost } \
\text { (in millions of dollars) }\
\hline
\end{array} & \begin{array} { c } 
\text { User Cost } \
\text { (in millions of dollars) }\
\hline
\end{array} \
0 & \$ 10 & \$ 5 \
1 & 15 & 5 \
2 & 20 & 5 \
3 & 25 & 5 \
4 & 30 & 5 \
5 & 35 & 5
\end{array}$$ Refer to the data.If the price of a bar of gold is $30,000 this year,how many bars (in thousands)should OZ extract and sell?

Accepted Answer

A)  2. 
B)  3. 
C)  4. 
D)  5. 
A)  2. 
B)  3. 
C)  4. 
D)  5.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Accepted Answer

A) True 
 B)False

Question 15

Global resource demand has:

Accepted Answer

A)  remained relatively constant because increases in population have been offset by declining consumption per person. 
B)  declined because of technological progress. 
C)  remained constant because population growth and increased consumption per person have been offset by technological progress. 
D)  increased because population growth and increased consumption per person have more than offset reduced demand due to technological progress. 
A)  remained relatively constant because increases in population have been offset by declining consumption per person. 
B)  declined because of technological progress. 
C)  remained constant because population growth and increased consumption per person have been offset by technological progress. 
D)  increased because population growth and increased consumption per person have more than offset reduced demand due to technological progress.

Question 16

Individual transferable quotas (ITQs):

Accepted Answer

A)  promote efficiency and limit catches. 
B)  promote efficiency in production but still lead to overfishing. 
C)  limit catches but encourage production cost increases that are inefficient. 
D)  have failed to limit catches or promote efficiency. 
A)  promote efficiency and limit catches. 
B)  promote efficiency in production but still lead to overfishing. 
C)  limit catches but encourage production cost increases that are inefficient. 
D)  have failed to limit catches or promote efficiency.

Question 17

Productive inputs that are actually or virtually fixed in supply are known as:

Accepted Answer

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

Question 18

In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Accepted Answer

A)  coal,natural gas,nuclear,and hydropower. 
B)  coal,hydropower,nuclear,and renewables (wind and solar). 
C)  natural gas,coal,hydropower,and petroleum. 
D)  hydropower,nuclear,coal,and petroleum. 
A)  coal,natural gas,nuclear,and hydropower. 
B)  coal,hydropower,nuclear,and renewables (wind and solar). 
C)  natural gas,coal,hydropower,and petroleum. 
D)  hydropower,nuclear,coal,and petroleum.

Question 19

Other things equal,ethanol made from corn 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 20

Which of the following is considered a renewable natural resource?

Accepted Answer

A)  Natural gas. 
B)  Copper. 
C)  Solar power. 
D)  Coal. 
A)  Natural gas. 
B)  Copper. 
C)  Solar power. 
D)  Coal.

If per capita trash generation is constant over time,this implies that:

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

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

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

(Consider This)Governments' main economic concern about low birthrates is that:

A user cost of zero implies that:

Why have commodity prices fallen since 1850?

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

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Global resource demand has:

Individual transferable quotas (ITQs):

Productive inputs that are actually or virtually fixed in supply are known as:

In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Other things equal,ethanol made from corn becomes economically viable (as or less costly than using oil)when oil prices reach _____ or more per barrel.

Which of the following is considered a renewable natural resource?

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

If per capita trash generation is constant over time,this implies that:

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

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

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

(Consider This)Governments' main economic concern about low birthrates is that:

A user cost of zero implies that:

Why have commodity prices fallen since 1850?

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

A total fertility rate of approximately 1.0 will cause each generation to be half as large as the preceding generation.

Global resource demand has:

Individual transferable quotas (ITQs):

Productive inputs that are actually or virtually fixed in supply are known as:

In 2012,the primary sources of U.S.electricity generation,in order from largest to smallest,were:

Other things equal,ethanol made from corn becomes economically viable (as or less costly than using oil)when oil prices reach _____ or more per barrel.

Which of the following is considered a renewable natural resource?

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