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)  lobsterE) A) and D)
F) B) and C)

Question 2

In modern economies, the cost of raising children has

Accepted Answer

A)  decreased because of laxer enforcement of laws that make child labor illegal.
B)  increased because of stronger enforcement of laws that make child labor illegal.
C)  increased because of fewer requirements for schooling until adulthood.
D)  decreased because of more requirements for schooling until adulthood.E) C) and D)
F) All of the above

Question 3

Definition of property rights is a key component to proper conservation of resources.

Accepted Answer

A) True 
 B)False

Question 4

The total fertility rate

Accepted Answer

A)  measures the average number of children that a woman is expected to have during her lifetime.
B)  exceeds the replacement rate in countries with a falling population.
C)  equals the rate of population change over time.
D)  rises as income rises.E) None of the above
F) B) and C)

Question 5

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.E) B) and D)
F) None of the above

Question 6

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.E) A) and B)
F) All of the above

Question 7

In time-value of money analysis, an increase in interest rates

Accepted Answer

A)  raises the present value of a future amount.
B)  lowers the present value of a future amount.
C)  lowers the future value of a present amount.
D)  has no effect on present or future amount.E) B) and D)
F) C) and D)

Question 8

(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.E) All of the above
F) A) and B)

Question 9

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.E) C) and D)
F) B) and C)

Question 10

Total allowable catch policies and individual transferable quotas both

Accepted Answer

A)  limit catch sizes and promote efficiency.
B)  limit catch sizes, but TACs promote inefficiency.
C)  promote efficiency, but only TACs limit catch sizes.
D)  promote efficiency, but only ITQs limit catch sizes.E) A) and D)
F) C) and D)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Because wind turbines supply no energy on windless days, and solar power is only generated when the sun is up and out, one inherent problem with both wind and solar power is the

Accepted Answer

A)  government subsidy problem.
B)  zero-emissions problem.
C)  energy storage problem.
D)  oil-complementarity problem.E) A) and D)
F) All of the above

Question 13

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 14

According to U.S.Geological Survey data from 1950 to 2010, total water use in the United States has

Accepted Answer

A)  continually increased.
B)  continually decreased.
C)  increased and then leveled off.
D)  decreased and then leveled off.E) A) and B)
F) A) and C)

Question 15

A company's extraction cost curve slopes upward to reflect

Accepted Answer

A)  that marginal extraction costs increase as the company extracts more of the resource.
B)  that user costs rise as the company extracts more of the resource.
C)  that the price of the nonrenewable resource increases as the amount extracted increases.
D)  all of these.E) C) and D)
F) A) and B)

Question 16

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Accepted Answer

A)  an increase in the present value of expected future profits
B)  a decrease in extraction costs
C)  a decrease in user costs
D)  an increase in the current price of the resourceE) None of the above
F) A) and C)

Question 17

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

Accepted Answer

A)  preserving elephants in Africa
B)  drilling for oil in Saudi Arabia
C)  mining of oil shale in Canada
D)  hunting of deer in the United StatesE) None of the above
F) C) and D)

Question 18

Better technology means that more output in the U.S.economy can be produced

Accepted Answer

A)  with a greater amount of energy input.
B)  with the same amount of energy input.
C)  but it will lead to a fall in the standard of living.
D)  but it will lead to a rise in population growth.E) B) and C)
F) None of the above

Question 19

ITQs both limit catches and encourage fishing in the least costly way.

Accepted Answer

A) True 
 B)False

Question 20

Under a TAC system, fishing of a particular fishery is halted after

Accepted Answer

A)  a predetermined time period.
B)  a predetermined amount of fish has been caught.
C)  a predetermined number of fishing trips have been taken by each registered boat.
D)  the market price of the fish falls below a predetermined trigger price.E) None of the above
F) A) and B)

Exam 19: Natural Resource and Energy Economics

Better technology means that more output in the U.S.economy can be produced

Correct AnswerverifiedShow Answer

Which of the following is the best example of a market failure to conserve a resource resulting from poorly defined property rights?

Correct AnswerverifiedShow Answer

In time-value of money analysis, an increase in interest rates

Correct AnswerverifiedShow Answer

In modern economies, the cost of raising children has

Correct AnswerverifiedShow Answer

According to U.S.Geological Survey data from 1950 to 2010, total water use in the United States has

Correct AnswerverifiedShow Answer

A company's extraction cost curve slopes upward to reflect

Correct AnswerverifiedShow Answer

The total fertility rate

Correct AnswerverifiedShow Answer

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

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Under a TAC system, fishing of a particular fishery is halted after

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Definition of property rights is a key component to proper conservation of resources.

Correct AnswerverifiedShow Answer

ITQs both limit catches and encourage fishing in the least costly way.

Correct AnswerverifiedShow Answer

Extraction costs of a nonrenewable resource include the

Correct AnswerverifiedShow Answer

Total allowable catch policies and individual transferable quotas both

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Because wind turbines supply no energy on windless days, and solar power is only generated when the sun is up and out, one inherent problem with both wind and solar power is the

Correct AnswerverifiedShow Answer

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