Question 1

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, their combined profit would be

Accepted Answer

A)   $28,000.
B)   $32,000.
C)   $40,000.
D)   $54,000.E) B) and D)
F) None of the above

Question 2

The total fertility rate necessary to keep the population constant is approximately equal to

Accepted Answer

A)   1.0.
B)   1.5.
C)   2.1.
D)   3.0.E) B) and C)
F) B) and D)

Question 3

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. 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)   $15E) All of the above
F) A) and C)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Relative to 1800, the living standard of the average person today in the United States is about times higher.

Accepted Answer

A)   5
B)   12
C)   20
D)   42E) None of the above
F) B) and C)

Question 6

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

Accepted Answer

A)   petroleum
B)   nuclear
C)   hydropower
D)   natural gasE) B) and C)
F) None of the above

Question 7

Other things equal, biodiesel becomes economically viable (as or less costly than using oil)  when oil prices reach or more per barrel.

Accepted Answer

A)   $60
B)   $80
C)   $100
D)   $120E) A) and D)
F) All of the above

Question 8

A Middle Eastern country has an oil reserve that it can extract for a profit of $60 a barrel today, $65 a barrel in two years, $70 a barrel in three years, and $75 in four years. The current market rate of interest is 7 percent. When should this country tap into its oil reserve to obtain the most profit per barrel in present value terms?

Accepted Answer

A)   today
B)   two years
C)   three years
D)   four yearsE) A) and B)
F) B) and C)

Question 9

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.E) A) and B)
F) B) and D)

Question 10

The era after the Industrial Revolution proved that it was impossible to have improved standards of living with large population growth.

Accepted Answer

A) True 
 B)False

Question 11

The key difficulty with fishery management is that

Accepted Answer

A)   the only way to establish property rights over a fish swimming in the ocean is to catch and kill it.
B)   fishery management deals with live resources while forestry does not.
C)   it deals with a nonrenewable resource.
D)   there are so many types of fish, and they're found in so many locations.E) A) and D)
F) None of the above

Question 12

In electricity generation, it is most economically efficient to use a single energy source.

Accepted Answer

A) True 
 B)False

Question 13

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) C) and D)

Question 14

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 the other possible answers are correct.E) None of the above
F) B) and C)

Question 15

Population will necessarily fall if the

Accepted Answer

A)   birthrate exceeds the replacement rate.
B)   replacement rate exceeds the birthrate.
C)   birthrate exceeds the total fertility rate.
D)   total fertility rate exceeds the birthrate.E) B) and D)
F) A) and C)

Question 16

The Economist magazine's Commodities Price Index tracks the prices of the most

Accepted Answer

A)   important finished goods that are traded internationally.
B)   important minerals that are traded internationally.
C)   important productive resources that are traded internationally.
D)   heavily traded agricultural-based products.E) All of the above
F) A) and B)

Question 17

Alternative fuels become more economically viable as

Accepted Answer

A)   the demand for oil decreases.
B)   subsidies for alternative fuels are removed.
C)   oil exploration and drilling technology improve.
D)   the price of oil rises.E) None of the above
F) B) and C)

Question 18

Present value allows us to weigh the benefits and costs of using resources today or in the future.

Accepted Answer

A) True 
 B)False

Question 19

In the case of conflict diamonds, the strict enforcement of property rights has led to too fast of a rate of extraction.

Accepted Answer

A) True 
 B)False

Question 20

World commodity prices over the past 150 years have

Accepted Answer

A)   steadily decreased in both the short run and long run.
B)   decreased in the long run despite occasional short-run increases.
C)   remained constant in the long run despite occasional short-run fluctuations.
D)   steadily increased in both the short run and long run.E) None of the above
F) B) and C)

Exam 19: Natural Resource and Energy Economics

A fishery is typically identified by

Correct Answer
verified

The era after the Industrial Revolution proved that it was impossible to have improved standards of living with large population growth.

Correct Answer
verified

Present value allows us to weigh the benefits and costs of using resources today or in the future.

Correct Answer
verified

Correct Answer
verified

In electricity generation, it is most economically efficient to use a single energy source.

Correct Answer
verified

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

Correct Answer
verified

World commodity prices over the past 150 years have

Correct Answer
verified

In the case of conflict diamonds, the strict enforcement of property rights has led to too fast of a rate of extraction.

Correct Answer
verified

The key difficulty with fishery management is that

Correct Answer
verified

Relative to 1800, the living standard of the average person today in the United States is about times higher.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The total fertility rate necessary to keep the population constant is approximately equal to

Correct Answer
verified

It is generally easier to prevent deforestation than fishery collapse because

Correct Answer
verified

The Economist magazine's Commodities Price Index tracks the prices of the most

Correct Answer
verified

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Alternative fuels become more economically viable as

Correct Answer
verified

Population will necessarily fall if the

Correct Answer
verified

Exam 19: Natural Resource and Energy Economics

A fishery is typically identified by

Correct AnswerverifiedShow Answer

The era after the Industrial Revolution proved that it was impossible to have improved standards of living with large population growth.

Correct AnswerverifiedShow Answer

Present value allows us to weigh the benefits and costs of using resources today or in the future.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In electricity generation, it is most economically efficient to use a single energy source.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

World commodity prices over the past 150 years have

Correct AnswerverifiedShow Answer

In the case of conflict diamonds, the strict enforcement of property rights has led to too fast of a rate of extraction.

Correct AnswerverifiedShow Answer

The key difficulty with fishery management is that

Correct AnswerverifiedShow Answer

Relative to 1800, the living standard of the average person today in the United States is about times higher.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The total fertility rate necessary to keep the population constant is approximately equal to

Correct AnswerverifiedShow Answer

It is generally easier to prevent deforestation than fishery collapse because

Correct AnswerverifiedShow Answer

The Economist magazine's Commodities Price Index tracks the prices of the most

Correct AnswerverifiedShow Answer

Other things equal, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach or more per barrel.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Alternative fuels become more economically viable as

Correct AnswerverifiedShow Answer

Population will necessarily fall if the

Correct AnswerverifiedShow Answer

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