Question 1

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

Accepted Answer

A)  Japan
B)  China
C)  France
D)  the United StatesE) C) and D)
F) A) and C)

Question 2

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A)  solar power
B)  coal
C)  oceans
D)  aquifersE) A) and D)
F) A) and C)

Question 3

Higher interest rates will, all else equal,

Accepted Answer

A)  increase the extraction cost of a resource.
B)  increase the user cost of extracting a resource.
C)  reduce the user cost of extracting a resource.
D)  have no impact on either the user cost or extraction cost of a resource.E) C) and D)
F) B) and D)

Question 4

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Accepted Answer

A) True 
 B)False

Question 5

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil)  when oil prices reach or more per barrel.

Accepted Answer

A)  $60
B)  $80
C)  $100
D)  $120E) A) and B)
F) A) and C)

Question 6

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 7

(Consider This)  Which of the following nations has implemented policies that pay women to have additional children?

Accepted Answer

A)  Russia
B)  France
C)  Italy
D)  all of these nationsE) B) and C)
F) C) and D)

Question 8

Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today.

Accepted Answer

A) True 
 B)False

Question 9

Higher user costs imply that a resource should be extracted more quickly.

Accepted Answer

A) True 
 B)False

Question 10

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

Accepted Answer

A) True 
 B)False

Question 11

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) None of the above

Question 12

Most developed countries have fertility rates less than 2.1.

Accepted Answer

A) True 
 B)False

Question 13

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 C)
F) B) and C)

Question 14

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) None of the above

Question 15

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) B) and C)
F) A) and B)

Question 16

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

Accepted Answer

A) True 
 B)False

Question 17

In 2014, the primary sources of U.S.electricity generation, in order from largest to smallest, were

Accepted Answer

A)  natural gas, coal, petroleum, and nuclear.
B)  natural gas, hydropower, nuclear, and renewables (wind and solar) .
C)  coal, natural gas, nuclear, and hydropower.
D)  hydropower, nuclear, coal, and petroleum.E) A) and B)
F) B) and C)

Question 18

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Accepted Answer

A) True 
 B)False

Question 19

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 20

In the case of extraction of a nonrenewable resource, when user costs increase, it implies that expected future profits

Accepted Answer

A)  decrease, while the amount of current extraction increases.
B)  decrease, and the amount of current extraction decreases.
C)  increase, and the amount of current extraction increases.
D)  increase, while the amount of current extraction decreases.E) None of the above
F) A) and B)

Exam 19: Natural Resource and Energy Economics

User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.

Correct AnswerverifiedShow Answer

Which of the following countries had the highest fertility rate in 2015, according to The World Factbook data?

Correct AnswerverifiedShow Answer

A mining company's extraction costs curve is

Correct AnswerverifiedShow Answer

Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Higher interest rates will, all else equal,

Correct AnswerverifiedShow Answer

(Consider This) Which of the following nations has implemented policies that pay women to have additional children?

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

Higher user costs imply that a resource should be extracted more quickly.

Correct AnswerverifiedShow Answer

In the United States and parts of Western Europe, the amount of land covered by forests is increasing.

Correct AnswerverifiedShow Answer

In 2014, the primary sources of U.S.electricity generation, in order from largest to smallest, were

Correct AnswerverifiedShow Answer

Malthus's theory states that living standards could only temporarily rise above subsistence levels.

Correct AnswerverifiedShow Answer

Which of the following is considered a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil) when oil prices reach or more per barrel.

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

Most developed countries have fertility rates less than 2.1.

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

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

Correct AnswerverifiedShow Answer

In the case of extraction of a nonrenewable resource, when user costs increase, it implies that expected future profits

Correct AnswerverifiedShow Answer

Thomas Malthus argued that increases in living standards tend to reduce birthrates.

Correct AnswerverifiedShow Answer

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