Question 1

Elephants are moving closer to extinction in places where they are treated as private property.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

One of the worst systems for encouraging conservation of fisheries is the combination of total allowable catch (TAC) with individual transferable quota (ITQ).

Accepted Answer

A) True 
 B)False

Question 4

The long-run total demand for commodity resources is driven by which of the following forces?

Accepted Answer

A)   rising number of people alive and an increasing amount of consumption per person
B)   stable number of people alive and an increasing amount of consumption per person
C)   rising number of people alive and a stable amount of consumption per person
D)   rising number of people alive and a decreasing amount of consumption per personE) All of the above
F) A) and D)

Question 5

One of the world's greatest economic challenges over the coming decades will be to supply the resources that will be demanded as living standards in poorer countries rise to rich-country standards.

Accepted Answer

A) True 
 B)False

Question 6

The real cost of buying a market basket of 25 important commodities in 2015 compared to the cost in the 1845-1850 base period in The Economist's Commodity Price Index is

Accepted Answer

A)   higher by about 100 percent.
B)   about the same or equal.
C)   lower by about 65 percent.
D)   higher by about 50 percent.E) A) and B)
F) B) and C)

Question 7

Petroleum is the largest source of electric energy generated in the U.S.

Accepted Answer

A) True 
 B)False

Question 8

A mining company's extraction costs curve is

Accepted Answer

A)   upward-sloping because the more the company extracts, the more its marginal extraction costs increase.
B)   upward-sloping because the more the company extracts, the more its marginal extraction costs decrease.
C)   downward-sloping because the more the company extracts, the more its marginal extraction costs increase.
D)   downward-sloping because the more the company extracts, the more its marginal extraction costs decrease.E) B) and C)
F) A) and C)

Question 9

Which of the following is the best example of a fishery?

Accepted Answer

A)   all marine life along the Great Barrier Reef
B)   Pacific halibut
C)   U.S. Department of Fish and Game
D)   crabE) C) and D)
F) B) and C)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Since 1990, approximately how much trash per person per day has been generated in the United States?

Accepted Answer

A)   2 pounds.
B)   3.4 pounds.
C)   4.5 pounds.
D)   12.8 pounds.E) C) and D)
F) A) and B)

Question 12

According to demographers. The "demographic transition" resulting from an increase in living standards follows a pattern of

Accepted Answer

A)   death rates falling ahead of a decline in birthrates.
B)   death rates falling after birthrates fall.
C)   death rates rising as birthrates fall.
D)   death rates rising as birthrates rise.E) All of the above
F) B) and C)

Question 13

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

Question 14

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present)  is known by natural resource economists as the

Accepted Answer

A)   extraction cost.
B)   future cost.
C)   conservation cost.
D)   user cost.E) A) and C)
F) A) and D)

Question 15

In energy economics, "BTU" stands for

Accepted Answer

A)   boiling temperature unit.
B)   base tax utility.
C)   British thermal unit.
D)   base technology utility.E) A) and B)
F) C) and D)

Question 16

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.E) None of the above
F) All of the above

Question 17

Under the total allowable catch (TAC)  system of fishing,

Accepted Answer

A)   there are limits to the number of days a species can be caught.
B)   biologists determine the size of the catch based on sustainable levels.
C)   the number of fishing boats allowed to fish in a specific area is restricted.
D)   priority is given to catching fish with the greatest market value.E) All of the above
F) B) and D)

Question 18

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Accepted Answer

A)   each generation will be one-fourth as large as the previous one.
B)   each generation will be half as large as the previous one.
C)   each generation will be as large as the previous one.
D)   each generation will be one-half larger than the previous.E) None of the above
F) All of the above

Question 19

If predictions that the world will run out of oil or petroleum in the next century become true, then

Accepted Answer

A)   the world would run out of energy.
B)   alternative sources would become viable.
C)   economies would grind to a halt.
D)   population will decline due to starvation.E) A) and C)
F) B) and D)

Question 20

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate is 4 percent. The present value of this cost is about

Accepted Answer

A)   $28.
B)   $29.
C)   $30.
D)   $32.E) B) and D)
F) B) and C)

Exam 19: Natural Resource and Energy Economics

In energy economics, "BTU" stands for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate is 4 percent. The present value of this cost is about

Correct AnswerverifiedShow Answer

Elephants are moving closer to extinction in places where they are treated as private property.

Correct AnswerverifiedShow Answer

A mining company's extraction costs curve is

Correct AnswerverifiedShow Answer

One of the world's greatest economic challenges over the coming decades will be to supply the resources that will be demanded as living standards in poorer countries rise to rich-country standards.

Correct AnswerverifiedShow Answer

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

Correct AnswerverifiedShow Answer

Which of the following is the best example of a fishery?

Correct AnswerverifiedShow Answer

The real cost of buying a market basket of 25 important commodities in 2015 compared to the cost in the 1845-1850 base period in The Economist's Commodity Price Index is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One of the worst systems for encouraging conservation of fisheries is the combination of total allowable catch (TAC) with individual transferable quota (ITQ).

Correct AnswerverifiedShow Answer

If predictions that the world will run out of oil or petroleum in the next century become true, then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Global resource demand has

Correct AnswerverifiedShow Answer

Since 1990, approximately how much trash per person per day has been generated in the United States?

Correct AnswerverifiedShow Answer

The long-run total demand for commodity resources is driven by which of the following forces?

Correct AnswerverifiedShow Answer

Demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then

Correct AnswerverifiedShow Answer

Petroleum is the largest source of electric energy generated in the U.S.

Correct AnswerverifiedShow Answer

According to demographers. The "demographic transition" resulting from an increase in living standards follows a pattern of

Correct AnswerverifiedShow Answer

Under the total allowable catch (TAC) system of fishing,

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified