Question 1

Overextraction of a resource in the present can occur because

Accepted Answer

A)  there is a user cost.
B)  there is an extraction cost.
C)  users can benefit from conservation.
D)  property rights are not clearly defineD.E) B) and C)
F) A) and D)

Question 2

Which of the following is considered a renewable natural resource?

Accepted Answer

A)  aquifers
B)  coal
C)  petroleum
D)  ironE) A) and C)
F) A) and B)

Question 3

A rising standard of living will

Accepted Answer

A)  necessarily reduce the population by reducing the birthrate.
B)  increase the birthrate.
C)  reduce the birthrate, but population may continue to grow if the death rate falls more quickly.
D)  reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children.E) C) and D)
F) None of the above

Question 4

Over the past decade, total and per capita trash generated in the United States have

Accepted Answer

A)  both increased at about the same rate.
B)  increased slightly and leveled off, respectively.
C)  both fallen.
D)  leveled off and fallen, respectively.E) B) and C)
F) None of the above

Question 5

Renewable resources

Accepted Answer

A)  can never be exhausted permanently.
B)  can be exhausted if harvest rates exceed replenishment rates for an extended period.
C)  can be exhausted if replenishment rates exceed harvest rates for an extended period.
D)  will tend to be overharvested when they are private property.E) A) and B)
F) None of the above

Question 6

In recent years, per capita energy use in developed countries such as the United States has

Accepted Answer

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

Question 7

Which fishery product in the U.S.had the greatest market value in terms of its catch in 2014?

Accepted Answer

A)  blue crab
B)  Pacific cod
C)  oysters
D)  lobsterE) B) and D)
F) A) and D)

Question 8

When diamonds are mined in conflict or war-torn areas, there is

Accepted Answer

A)  more loss from auctioning off the resource.
B)  minimal waste of this resource.
C)  strong incentive for conservation.
D)  strong incentive for overmining.E) A) and C)
F) A) and B)

Question 9

About three-fourths of U.S.electricity is generated using coal, natural gas, and petroleum.

Accepted Answer

A) True 
 B)False

Question 10

A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound.The current market rate of interest is 5 percent.The present value of this future extraction is

Accepted Answer

A)  $36.
B)  $38.
C)  $40.
D)  $42.E) A) and B)
F) C) and D)

Question 11

In countries like Botswana and Zimbabwe, local villages have been given property rights over local elephants with the result that elephant populations

Accepted Answer

A)  have been decimated as villagers try to maximize short-run profit.
B)  have grown as villagers have protected the elephants to support their tourist industry.
C)  have grown exponentially, with adverse environmental impacts.
D)  are in serious decline, as ivory prices have risen.E) None of the above
F) B) and D)

Question 12

The "replacement rate" is the birthrate necessary to

Accepted Answer

A)  keep a nation's population from decreasing.
B)  keep an able-bodied workforce in the economy.
C)  maintain the productivity level in an economy.
D)  maintain the standard of living of a nation.E) All of the above
F) B) and D)

Question 13

If the price of oil falls, the economic viability of alternative energy sources also tends to fall.

Accepted Answer

A) True 
 B)False

Question 14

In the United States in 2014, one million BTUs of energy yielded worth of goods and services (in 2009 dollars) .

Accepted Answer

A)  $57.90
B)  $63.09
C)  $127.37
D)  $162.07E) A) and B)
F) C) and D)

Question 15

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 C)

Question 16

If per-capita energy usage has leveled off while per capita GDP has risen, then it must mean that each dollar of output produced required a larger amount of energy.

Accepted Answer

A) True 
 B)False

Question 17

An example of a renewable resource would be

Accepted Answer

A)  oil.
B)  coal.
C)  iron ore.
D)  aquifers.E) B) and C)
F) All of the above

Question 18

Average per capita water consumption in the United States was approximately how many gallons per day in 2010?

Accepted Answer

A)  355
B)  764
C)  1,941
D)  1,134E) B) and C)
F) A) and B)

Question 19

About what minimum price per barrel of oil is necessary for biodiesel to become economically viable as an alternative energy source?

Accepted Answer

A)  $30 per barrel
B)  $50 per barrel
C)  $100 per barrel
D)  $80 per barrelE) A) and B)
F) None of the above

Question 20

Which of the following statements is true about falling birthrates?

Accepted Answer

A)  They tend to lag behind falling death rates, allowing population growth to continue for at least one or two more generations.
B)  They tend to precede declines in death rates, causing a temporary dip in population before it stabilizes in a generation or two.
C)  They tend to lag behind declining standards of living.
D)  They always cause population to decline.E) B) and D)
F) None of the above

Exam 19: Natural Resource and Energy Economics

A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound.The current market rate of interest is 5 percent.The present value of this future extraction is

Correct AnswerverifiedShow Answer

In recent years, per capita energy use in developed countries such as the United States has

Correct AnswerverifiedShow Answer

If per-capita energy usage has leveled off while per capita GDP has risen, then it must mean that each dollar of output produced required a larger amount of energy.

Correct AnswerverifiedShow Answer

Which of the following statements is true about falling birthrates?

Correct AnswerverifiedShow Answer

An example of a renewable resource would be

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A rising standard of living will

Correct AnswerverifiedShow Answer

Which fishery product in the U.S.had the greatest market value in terms of its catch in 2014?

Correct AnswerverifiedShow Answer

Over the past decade, total and per capita trash generated in the United States have

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is considered a renewable natural resource?

Correct AnswerverifiedShow Answer

Renewable resources

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In countries like Botswana and Zimbabwe, local villages have been given property rights over local elephants with the result that elephant populations

Correct AnswerverifiedShow Answer

About what minimum price per barrel of oil is necessary for biodiesel to become economically viable as an alternative energy source?

Correct AnswerverifiedShow Answer

If the price of oil falls, the economic viability of alternative energy sources also tends to fall.

Correct AnswerverifiedShow Answer

Overextraction of a resource in the present can occur because

Correct AnswerverifiedShow Answer

When diamonds are mined in conflict or war-torn areas, there is

Correct AnswerverifiedShow Answer

The "replacement rate" is the birthrate necessary to

Correct AnswerverifiedShow Answer

About three-fourths of U.S.electricity is generated using coal, natural gas, and petroleum.

Correct AnswerverifiedShow Answer

In the United States in 2014, one million BTUs of energy yielded worth of goods and services (in 2009 dollars) .

Correct AnswerverifiedShow Answer

Average per capita water consumption in the United States was approximately how many gallons per day in 2010?

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