Question 1

The table 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.Suppose that a new government regulation is going to shut down OZ's mining operation one year from now.If the current price per bar of gold is $25,000, how many bars (in thousands)  should OZ extract and sell this year?

Accepted Answer

A)  3
B)  4
C)  5
D)  As many as possible.

Question 2

The key demand-side factors that cause the depletion of finite natural resources are

Accepted Answer

A)  population and productivity.
B)  productivity and per capita consumption.
C)  per capita consumption and efficiency.
D)  population and per capita consumption.

Question 3

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Accepted Answer

A)  minimize the net costs from doing so.
B)  maximize the net benefits from doing so.
C)  minimize the negative externalities of doing so.
D)  maximize the positive externalities of doing so.

Question 4

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.The forest is more likely to be harvested and replanted at a sustainable rate if

Accepted Answer

A)  property rights are well defined and enforced.
B)  property rights are weak or nonexistent.
C)  there is no government protection of property rights and the parties can negotiate a settlement.
D)  Ben is given sole ownership of the property.

Question 5

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true about U.S.energy consumption and per capita real GDP since 1990?

Accepted Answer

A)  Per capita energy consumption and per capita real GDP have both risen.
B)  Per capita energy consumption has fallen, while per capita real GDP has risen.
C)  Per capita energy consumption and per capita real GDP have both fallen.
D)  Per capita consumption of energy has been unchanged, while per capita real GDP has risen.

Question 7

If the property rights for forests are clear and enforced, then

Accepted Answer

A)  they will become common property.
B)  governments will not be able to overtax them.
C)  owners have profit incentives to harvest slowly over time.
D)  the logging of the forest will increase at an unsustainable rate.

Question 8

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.

Question 9

In 2014, according to U.S.Energy Information Administration data, which of the following sources of energy contributed the smallest share to U.S.electricity generation?

Accepted Answer

A)  petroleum
B)  nuclear
C)  hydropower
D)  natural gas

Question 10

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.

Question 11

Some nations are increasing the amount of land covered by forests, while others are experiencing rapid deforestation.According to economists, this is largely because

Accepted Answer

A)  different nations have different ethical views regarding treatment of the environment.
B)  nations with increasing forest cover have poorly enforced or nonexistent property rights.
C)  nations with declining forest cover treat forests as private property or strictly regulated government property.
D)  nations with increasing forest cover treat forests as private property or strictly regulated government property.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

(Consider This)  The tragedy of the commons occurs primarily

Accepted Answer

A)  where government subsidies are present.
B)  when incentives to preserve are strongest.
C)  where property rights are lacking.
D)  on privately held lands.

Question 14

The user cost of extracting a nonrenewable resource is

Accepted Answer

A)  inversely related to how much of the resource remains.
B)  directly related to how much of the resource remains.
C)  unrelated to how much of the resource remains.
D)  inversely related to the expected future price of the resource.

Question 15

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A)  wind
B)  timber
C)  oceans
D)  tin

Question 16

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Accepted Answer

A)  valid because high standards of living have produced higher birthrates.
B)  valid because high standards of living have produced lower birthrates.
C)  invalid because high standards of living have produced higher birthrates.
D)  invalid because high standards of living have produced lower birthrates.

Question 17

As nations become richer, they tend to pollute

Accepted Answer

A)  less and offer better protection for sensitive ecosystems.
B)  less but offer worse protection for sensitive ecosystems.
C)  more and offer worse protection for sensitive ecosystems.
D)  more but offer better protection for sensitive ecosystems.

Question 18

Solar energy, forests, fish, and oil are all examples of

Accepted Answer

A)  renewable resources.
B)  capital resources.
C)  tangible resources.
D)  natural resources.

Question 19

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 use only domestically produced energy.

Question 20

Over the past decade, U.S.per capita consumption of water

Accepted Answer

A)  and energy have both increased.
B)  has increased, while per capita consumption of energy has fallen.
C)  and energy have leveled off or fallen.
D)  has fallen, while per capita consumption of energy has increased.

Exam 19: Natural Resource and Energy Economics

The user cost of extracting a nonrenewable resource is

Correct Answer
verified

Which of the following is true about U.S.energy consumption and per capita real GDP since 1990?

Correct Answer
verified

Which of the following is considered a nonrenewable natural resource?

Correct Answer
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In 2014, according to U.S.Energy Information Administration data, which of the following sources of energy contributed the smallest share to U.S.electricity generation?

Correct Answer
verified

Over the past decade, U.S.per capita consumption of water

Correct Answer
verified

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

Correct Answer
verified

As nations become richer, they tend to pollute

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

To achieve economic efficiency in energy use, an economy

Correct Answer
verified

Solar energy, forests, fish, and oil are all examples of

Correct Answer
verified

Some nations are increasing the amount of land covered by forests, while others are experiencing rapid deforestation.According to economists, this is largely because

Correct Answer
verified

If the property rights for forests are clear and enforced, then

Correct Answer
verified

The primary focus of energy economics is how

Correct Answer
verified

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Correct Answer
verified

The key demand-side factors that cause the depletion of finite natural resources are

Correct Answer
verified

(Consider This) The tragedy of the commons occurs primarily

Correct Answer
verified

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Correct Answer
verified

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

The user cost of extracting a nonrenewable resource is

Correct AnswerverifiedShow Answer

Which of the following is true about U.S.energy consumption and per capita real GDP since 1990?

Correct AnswerverifiedShow Answer

Which of the following is considered a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

In 2014, according to U.S.Energy Information Administration data, which of the following sources of energy contributed the smallest share to U.S.electricity generation?

Correct AnswerverifiedShow Answer

Over the past decade, U.S.per capita consumption of water

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As nations become richer, they tend to pollute

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To achieve economic efficiency in energy use, an economy

Correct AnswerverifiedShow Answer

Solar energy, forests, fish, and oil are all examples of

Correct AnswerverifiedShow Answer

Some nations are increasing the amount of land covered by forests, while others are experiencing rapid deforestation.According to economists, this is largely because

Correct AnswerverifiedShow Answer

If the property rights for forests are clear and enforced, then

Correct AnswerverifiedShow Answer

The primary focus of energy economics is how

Correct AnswerverifiedShow Answer

Which one of the following statements is true? The fertility rates for major industrialized countries in recent years show that Malthus's theory regarding population is

Correct AnswerverifiedShow Answer

The key demand-side factors that cause the depletion of finite natural resources are

Correct AnswerverifiedShow Answer

(Consider This) The tragedy of the commons occurs primarily

Correct AnswerverifiedShow Answer

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Correct AnswerverifiedShow Answer

A fishery collapse happens when a fishery's population grows faster than fish can be harvested.

Correct AnswerverifiedShow Answer

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