Question 1

It is generally easier to prevent deforestation than fishery collapse because:

Accepted Answer

A)  it is easier to establish and enforce property rights on national lands than in international waters. 
B)  there is greater incentive to have sustainable forests than sustainable fisheries. 
C)  the demand for wood products has dropped significantly while the demand for fish has grown significantly. 
D)  all of these. 
A)  it is easier to establish and enforce property rights on national lands than in international waters. 
B)  there is greater incentive to have sustainable forests than sustainable fisheries. 
C)  the demand for wood products has dropped significantly while the demand for fish has grown significantly. 
D)  all of these.

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.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 3

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Accepted Answer

A) True 
 B)False

Question 4

Property rights for fish from the open ocean:

Accepted Answer

A)  do not exist. 
B)  are established by the United Nations. 
C)  exist once the fish are sold at market. 
D)  exist once the fish are caught. 
A)  do not exist. 
B)  are established by the United Nations. 
C)  exist once the fish are sold at market. 
D)  exist once the fish are caught.

Question 5

A fishery is typically identified by:

Accepted Answer

A)  location and size. 
B)  location and species. 
C)  species and size. 
D)  species and market value. 
A)  location and size. 
B)  location and species. 
C)  species and size. 
D)  species and market value.

Question 6

To achieve economic efficiency in energy use,an economy:

Accepted Answer

A)  often uses a variety of energy sources. 
B)  must use the single energy source in which it can achieve economies of scale. 
C)  should use all energy sources in equal proportion. 
D)  should only use domestically produced energy. 
A)  often uses a variety of energy sources. 
B)  must use the single energy source in which it can achieve economies of scale. 
C)  should use all energy sources in equal proportion. 
D)  should only use domestically produced energy.

Question 7

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 these. 
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 these.

Question 8

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

Accepted Answer

A)  Adam Smith. 
B)  Thomas Malthus. 
C)  John Maynard Keynes. 
D)  Alfred Marshall. 
A)  Adam Smith. 
B)  Thomas Malthus. 
C)  John Maynard Keynes. 
D)  Alfred Marshall.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

(Last Word)According to Yale University's Environmental Performance Index (EPI):

Accepted Answer

A)  countries with lower GDP per person tend to have healthier environments. 
B)  countries with higher GDP per person tend to have healthier environments. 
C)  there is no correlation between GDP per person and environmental quality. 
D)  growth in GDP per person initially improves environmental quality and then gradually reduces it. 
A)  countries with lower GDP per person tend to have healthier environments. 
B)  countries with higher GDP per person tend to have healthier environments. 
C)  there is no correlation between GDP per person and environmental quality. 
D)  growth in GDP per person initially improves environmental quality and then gradually reduces it.

Question 11

Resource demand has grown over time:

Accepted Answer

A)  because of population growth only. 
B)  because of increased consumption per person only. 
C)  because of both increased population and greater consumption per person. 
D)  despite decreases in population and consumption per person. 
A)  because of population growth only. 
B)  because of increased consumption per person only. 
C)  because of both increased population and greater consumption per person. 
D)  despite decreases in population and consumption per person.

Question 12

If property rights are weak or uncertain,resource extraction will tend to:

Accepted Answer

A)  occur faster than the rate that would maximize the long-run stream of profits. 
B)  occur slower than the rate that would maximize the long-run stream of profits. 
C)  occur at the rate that would maximize the long-run stream of profits. 
D)  stop. 
A)  occur faster than the rate that would maximize the long-run stream of profits. 
B)  occur slower than the rate that would maximize the long-run stream of profits. 
C)  occur at the rate that would maximize the long-run stream of profits. 
D)  stop.

Question 13

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.Suppose that a new government regulation is going to shut down OZ's mining operation one year from now.Assuming that all gold extracted is sold in the same year (cannot be stockpiled for later sale),how will the regulation affect the user cost?

Accepted Answer

A)  It will have no effect on the user cost. 
B)  The effect on the user cost cannot be determined. 
C)  The user cost will rise because the rate of extraction will rise. 
D)  The user cost will become zero because they will not be able to extract in the future. 
A)  It will have no effect on the user cost. 
B)  The effect on the user cost cannot be determined. 
C)  The user cost will rise because the rate of extraction will rise. 
D)  The user cost will become zero because they will not be able to extract in the future.

Question 14

The user cost of a resource is the market price paid by the buyer of the resource.

Accepted Answer

A) True 
 B)False

Question 15

Fish in the open ocean are protected by strong property rights.

Accepted Answer

A) True 
 B)False

Question 16

In which step of the demographic transition would we expect population to grow the fastest?

Accepted Answer

A)  Step 1. 
B)  Step 2. 
C)  Step 3. 
D)  There is no step that would be expected to consistently yield faster population growth. 
A)  Step 1. 
B)  Step 2. 
C)  Step 3. 
D)  There is no step that would be expected to consistently yield faster population growth.

Question 17

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Accepted Answer

A) True 
 B)False

Question 18

Commodity prices are relatively stable from year to year.

Accepted Answer

A) True 
 B)False

Question 19

What was the largest U.S.fishery,in dollar terms,in 2010?

Accepted Answer

A)  Pacific halibut. 
B)  Lobster. 
C)  Walleye pollock. 
D)  Sea scallop. 
A)  Pacific halibut. 
B)  Lobster. 
C)  Walleye pollock. 
D)  Sea scallop.

Question 20

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 maximum amount Kara would be willing to pay per ton for Kyle's ITQs?

Accepted Answer

A)  $3. 
B)  $7. 
C)  $8. 
D)  $15. 
A)  $3. 
B)  $7. 
C)  $8. 
D)  $15.

It is generally easier to prevent deforestation than fishery collapse because:

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Property rights for fish from the open ocean:

A fishery is typically identified by:

To achieve economic efficiency in energy use,an economy:

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

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

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

(Last Word)According to Yale University's Environmental Performance Index (EPI):

Resource demand has grown over time:

If property rights are weak or uncertain,resource extraction will tend to:

The user cost of a resource is the market price paid by the buyer of the resource.

Fish in the open ocean are protected by strong property rights.

In which step of the demographic transition would we expect population to grow the fastest?

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Commodity prices are relatively stable from year to year.

What was the largest U.S.fishery,in dollar terms,in 2010?

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

It is generally easier to prevent deforestation than fishery collapse because:

Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Property rights for fish from the open ocean:

A fishery is typically identified by:

To achieve economic efficiency in energy use,an economy:

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

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

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

(Last Word)According to Yale University's Environmental Performance Index (EPI):

Resource demand has grown over time:

If property rights are weak or uncertain,resource extraction will tend to:

The user cost of a resource is the market price paid by the buyer of the resource.

Fish in the open ocean are protected by strong property rights.

In which step of the demographic transition would we expect population to grow the fastest?

The United States produces more than twice as much output per million BTUs of energy consumed than it did in 1950.

Commodity prices are relatively stable from year to year.

What was the largest U.S.fishery,in dollar terms,in 2010?

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