Question 1

Refer to the diagram, assuming that the firm represented is operating on curve TC ₀ . How much will the firm extract this year?

Accepted Answer

A)  500
B)  750
C)  1,000
D)  It cannot be determined with the information given.E) None of the above
F) B) and C)

Question 2

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

Question 3

An increasing ratio of real GDP to BTU of energy consumption suggests that

Accepted Answer

A)  increased energy consumption led to increased energy production.
B)  increased energy production led to increased energy consumption.
C)  the discovery of energy sources greatly increased energy supply.
D)  advances in technology greatly increased energy efficiency.E) All of the above
F) C) and D)

Question 4

In fisheries management, ITQ stands for

Accepted Answer

A)  international transferable quota.
B)  individual transferable quota.
C)  international tuna quotas.
D)  individual trolling quotas.E) All of the above
F) B) and C)

Question 5

The primary focus of energy economics is how

Accepted Answer

A)  energy consumption is increasing.
B)  energy production is decreasing.
C)  people deal with the scarcity of energy.
D)  people conserve crude oil for future use.E) A) and C)
F) A) and D)

Question 6

Granting property rights to forestland tends to increase the rate at which the land is deforested.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Which of the following explains why commodity prices have 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.E) C) and D)
F) None of the above

Question 9

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. 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, her profit would be

Accepted Answer

A)  $20,000.
B)  $32,000.
C)  $30,000.
D)  $40,000.E) B) and C)
F) None of the above

Question 10

TAC policies help reduce overfishing and reduce costs for fishers.

Accepted Answer

A) True 
 B)False

Question 11

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.E) A) and D)
F) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A total fertility rate of 1.0 is necessary to keep the population constant over time.

Accepted Answer

A) True 
 B)False

Question 14

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Accepted Answer

A) True 
 B)False

Question 15

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Accepted Answer

A) True 
 B)False

Question 16

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Accepted Answer

A)  operate all plants at full capacity.
B)  operate all plants at less than full capacity.
C)  produce at several plants with different operating costs.
D)  produce at one plant with the lowest possible operating cost.E) B) and D)
F) A) and B)

Question 17

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach _____ or more per barrel.

Accepted Answer

A)  $80
B)  $110
C)  $50
D)  $40E) A) and B)
F) B) and C)

Question 18

In time-value of money analysis, a decrease in interest rates

Accepted Answer

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

Question 19

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Accepted Answer

A)  GDP rises, EPI score falls.
B)  GDP rises, EPI score rises.
C)  GDP falls, EPI score rises.
D)  GDP falls, EPI score stays relatively constant.E) None of the above
F) B) and C)

Question 20

As of 2017, approximately 62 percent of U.S. electricity is generated from

Accepted Answer

A)  hydroelectric.
B)  petroleum.
C)  nuclear energy.
D)  coal and natural gas.E) A) and B)
F) C) and D)

Exam 19: Natural Resource and Energy Economics

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

Correct Answer
verified

An increasing ratio of real GDP to BTU of energy consumption suggests that

Correct Answer
verified

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Correct Answer
verified

The user cost of extracting a nonrenewable resource is

Correct Answer
verified

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Correct Answer
verified

In time-value of money analysis, a decrease in interest rates

Correct Answer
verified

A total fertility rate of 1.0 is necessary to keep the population constant over time.

Correct Answer
verified

Granting property rights to forestland tends to increase the rate at which the land is deforested.

Correct Answer
verified

In fisheries management, ITQ stands for

Correct Answer
verified

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Correct Answer
verified

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach _____ or more per barrel.

Correct Answer
verified

The primary focus of energy economics is how

Correct Answer
verified

TAC policies help reduce overfishing and reduce costs for fishers.

Correct Answer
verified

Refer to the diagram, assuming that the firm represented is operating on curve TC ₀ . How much will the firm extract this year?

Correct Answer
verified

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Correct Answer
verified

Correct Answer
verified

Which of the following explains why commodity prices have fallen since 1850?

Correct Answer
verified

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

Correct Answer
verified

Since 1850, the

Correct Answer
verified

As of 2017, approximately 62 percent of U.S. electricity is generated from

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

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

Correct AnswerverifiedShow Answer

An increasing ratio of real GDP to BTU of energy consumption suggests that

Correct AnswerverifiedShow Answer

The demand for productive resources has grown faster than the supply of productive resources for the past 150 years.

Correct AnswerverifiedShow Answer

The user cost of extracting a nonrenewable resource is

Correct AnswerverifiedShow Answer

Total allowable catch policies promote economic efficiency better than individual transferable quotas.

Correct AnswerverifiedShow Answer

In time-value of money analysis, a decrease in interest rates

Correct AnswerverifiedShow Answer

A total fertility rate of 1.0 is necessary to keep the population constant over time.

Correct AnswerverifiedShow Answer

Granting property rights to forestland tends to increase the rate at which the land is deforested.

Correct AnswerverifiedShow Answer

In fisheries management, ITQ stands for

Correct AnswerverifiedShow Answer

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

Correct AnswerverifiedShow Answer

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach _____ or more per barrel.

Correct AnswerverifiedShow Answer

The primary focus of energy economics is how

Correct AnswerverifiedShow Answer

TAC policies help reduce overfishing and reduce costs for fishers.

Correct AnswerverifiedShow Answer

Refer to the diagram, assuming that the firm represented is operating on curve TC ₀ . How much will the firm extract this year?

Correct AnswerverifiedShow Answer

A plot of the Environment Performance Index (EPI) scores for nations on the vertical axis and corresponding GDP per person on the horizontal axis shows that as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following explains why commodity prices have fallen since 1850?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since 1850, the

Correct AnswerverifiedShow Answer

As of 2017, approximately 62 percent of U.S. electricity is generated from

Correct AnswerverifiedShow Answer

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