Question 1

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

Accepted Answer

A)   population in that country to rise over time.
B)   population in that country to fall over time.
C)   the replacement rate to also equal 1.8.
D)   the population to remain stable over time.E) None of the above
F) B) and C)

Question 2

A fishery collapse occurs when the

Accepted Answer

A)   fishery goes out of business.
B)   fishery is taken over by a government agency.
C)   fishery's population is harvested at a higher rate than it reproduces.
D)   fishery's population reproduces at a higher rate than it's harvested.E) C) and D)
F) B) and C)

Question 3

In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs," which refers to the cost of digging out the coal, running the mine, and transporting the coal.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

If the world begins to run out of oil, which of the following statements would be incorrect?

Accepted Answer

A)   The relative price of oil would become very high.
B)   The world would run out of energy.
C)   Alternative energy sources would become economically viable.
D)   The cost of energy would rise.E) A) and B)
F) All of the above

Question 6

Rapid population growth since 1800 has occurred primarily because of

Accepted Answer

A)   a significant increase in total fertility rates as living standards have risen.
B)   a significant reduction in death rates as living standards have risen.
C)   a significant increase in replacement rates as living standards have risen.
D)   all of the reasons given in the other possible answers.E) All of the above
F) B) and C)

Question 7

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

Question 8

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Accepted Answer

A)   more efficiently allocate resources.
B)   overvalue future resources by considering them "priceless."
C)   stop resource extraction.
D)   extract and use resources as quickly as possible.E) A) and B)
F) A) and C)

Question 9

In modern economies, the cost of raising children has

Accepted Answer

A)   decreased because of laxer enforcement of laws that make child labor illegal.
B)   increased because of stronger enforcement of laws that make child labor illegal.
C)   increased because of fewer requirements for schooling until adulthood.
D)   decreased because of more requirements for schooling until adulthood.E) A) and B)
F) None of the above

Question 10

Recent studies indicate that as the price of a barrel of oil rises to $80, the use of biodiesel as an alternative fuel becomes economically viable.

Accepted Answer

A) True 
 B)False

Question 11

An electricity company is considering damming a small river to generate electricity at a cost of $160,000 and a profit of $200,000 in 5 years. The current market rate is 5 percent. Should the company make the investment?

Accepted Answer

A)   Yes, the future value of the profit is greater than the present value of the cost.
B)   No, the future value of the profit is less than the present value of the cost.
C)   Yes, the present value of the profit is greater than the present value of the cost.
D)   No, the present value of the profit is less than the present value of the cost.E) B) and C)
F) A) and D)

Question 12

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

Accepted Answer

A)   less than 1 birth per woman per lifetime.
B)   equal to about 1 birth per woman per lifetime.
C)   equal to about 1.5 births per woman per lifetime.
D)   slightly more than 2 births per woman per lifetime.E) B) and D)
F) None of the above

Question 13

As of 2016, the world's population is approximately

Accepted Answer

A)   7.4 billion.
B)   5.3 billion.
C)   10 billion.
D)   1.2 trillion.E) A) and B)
F) A) and C)

Question 14

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

Accepted Answer

A)   Italy
B)   United States
C)   China
D)   all of these nationsE) C) and D)
F) None of the above

Question 15

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Accepted Answer

A)   an increase in the present value of expected future profits
B)   a decrease in extraction costs
C)   a decrease in user costs
D)   an increase in the current price of the resourceE) All of the above
F) B) and D)

Question 16

Just over half (55 percent)  of U.S. electricity is generated from

Accepted Answer

A)   hydroelectric.
B)   petroleum.
C)   nuclear energy.
D)   coal and gas.E) A) and B)
F) B) and D)

Question 17

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

Accepted Answer

A)   limiting the length of the catch season
B)   limiting the number of boats allowed in a given area
C)   limiting catch size (TA
C)  
D)   issuing individual transferable quotas (ITQs) E) None of the above
F) A) and D)

Question 18

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Accepted Answer

A)   overuse of natural resources, leading to famines.
B)   stable uses of natural resources, creating long-term stability.
C)   efficient use of natural resources, fostering prosperity.
D)   reduced dependence on natural resources, leading to growth.E) C) and D)
F) B) and C)

Question 19

In time-value of money analysis, an increase in interest rates

Accepted Answer

A)   raises the present value of a future amount.
B)   lowers the present value of a future amount.
C)   lowers the future value of a present amount.
D)   has no effect on present or future amount.E) A) and B)
F) B) and C)

Question 20

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

Exam 19: Natural Resource and Energy Economics

According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rapid population growth since 1800 has occurred primarily because of

Correct AnswerverifiedShow Answer

Taking into account infant and child mortality, the total fertility rate that is necessary to keep a country's population from falling over time is

Correct AnswerverifiedShow Answer

Just over half (55 percent) of U.S. electricity is generated from

Correct AnswerverifiedShow Answer

In modern economies, the cost of raising children has

Correct AnswerverifiedShow Answer

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Correct AnswerverifiedShow Answer

If a country has a total fertility rate of 1.8, then, all else equal, we would expect

Correct AnswerverifiedShow Answer

A fishery collapse occurs when the

Correct AnswerverifiedShow Answer

Recent studies indicate that as the price of a barrel of oil rises to $80, the use of biodiesel as an alternative fuel becomes economically viable.

Correct AnswerverifiedShow Answer

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

Correct AnswerverifiedShow Answer

An electricity company is considering damming a small river to generate electricity at a cost of $160,000 and a profit of $200,000 in 5 years. The current market rate is 5 percent. Should the company make the investment?

Correct AnswerverifiedShow Answer

As of 2016, the world's population is approximately

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In time-value of money analysis, an increase in interest rates

Correct AnswerverifiedShow Answer

In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs," which refers to the cost of digging out the coal, running the mine, and transporting the coal.

Correct AnswerverifiedShow Answer

If the world begins to run out of oil, which of the following statements would be incorrect?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following policies has succeeded in reducing fishery catch sizes without creating an "arms race" among fishers?

Correct AnswerverifiedShow Answer

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