Question 1

A logging company is considering logging an area for a current cost of $500 per acre to obtain a profit the next year of $600 per acre. The market rate of interest is 10 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) None of the above
F) A) and B)

Question 2

An example of a nonrenewable resource would be

Accepted Answer

A)  forests.
B)  oceans.
C)  gold ore.
D)  solar energy.E) B) and D)
F) None of the above

Question 3

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.E) All of the above
F) A) and B)

Question 4

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

Accepted Answer

A)  renewable resources.
B)  capital resources.
C)  tangible resources.
D)  natural resources.E) C) and D)
F) All of the above

Question 5

An example of a renewable resource would be

Accepted Answer

A)  oil.
B)  coal.
C)  iron ore.
D)  wildlife.E) None of the above
F) B) and D)

Question 6

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

A)  wind
B)  timber
C)  oceans
D)  tinE) A) and D)
F) A) and C)

Question 7

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2016?

Accepted Answer

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

Question 8

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

Question 9

From 1950 to 2017, according to data from the U.S. Energy Information Administration, the ratio of real GDP to energy consumption in the United States has been

Accepted Answer

A)  relatively constant.
B)  slowly decreasing.
C)  decreasing steeply.
D)  rising significantly.E) None of the above
F) A) and C)

Question 10

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

Accepted Answer

A)  $40 per barrel
B)  $50 per barrel
C)  $80 per barrel
D)  $110 per barrelE) A) and D)
F) A) and C)

Question 11

According to the United Nations Food and Agriculture Organization, approximately what percentage of the world's fisheries in 2018 were overexploited?

Accepted Answer

A)  7 percent
B)  15 percent
C)  33 percent
D)  60 percentE) A) and B)
F) None of the above

Question 12

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 D)
F) A) and B)

Question 13

Nonrenewable natural resources are fixed in supply (actually or virtually).

Accepted Answer

A) True 
 B)False

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.E) A) and D)
F) A) and C)

Question 15

Energy efficiency requires that we employ

Accepted Answer

A)  only the lowest-cost energy inputs.
B)  only domestic energy sources.
C)  a mix of energy inputs, some of which are more expensive than others.
D)  imported energy inputs and save domestic resources for future use.E) A) and B)
F) None of the above

Question 16

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $35 per unit in 3 years. The current market rate of interest is 6 percent. The present value of this cost is about

Accepted Answer

A)  $42.
B)  $37.
C)  $33.
D)  $29.E) None of the above
F) B) and D)

Question 17

An oil company has the opportunity to extract oil from a reserve in three years with a per barrel profit of $70 per barrel. The current market rate of interest is 4 percent. The present value of this future extraction is about

Accepted Answer

A)  $55
B)  $70
C)  $72
D)  $62E) All of the above
F) None of the above

Question 18

Resource demand has grown over time

Accepted Answer

A)  because of population growth only.
B)  because of increased consumption per person only.
C)  because of both increased population and greater consumption per person.
D)  despite decreases in population and consumption per person.E) All of the above
F) A) and D)

Question 19

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 19: Natural Resource and Energy Economics

Which of the following is considered a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

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

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The user cost of extracting a nonrenewable resource is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Resource demand has grown over time

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A rising standard of living will

Correct AnswerverifiedShow Answer

A logging company is considering logging an area for a current cost of $500 per acre to obtain a profit the next year of $600 per acre. The market rate of interest is 10 percent. Should the company make the investment?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which fishery product in the U.S. had the greatest market value in terms of its catch in 2016?

Correct AnswerverifiedShow Answer

An example of a renewable resource would be

Correct AnswerverifiedShow Answer

Energy efficiency requires that we employ

Correct AnswerverifiedShow Answer

An electricity company has the opportunity to use natural gas to generate electricity at a cost of $35 per unit in 3 years. The current market rate of interest is 6 percent. The present value of this cost is about

Correct AnswerverifiedShow Answer

The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.

Correct AnswerverifiedShow Answer

Nonrenewable natural resources are fixed in supply (actually or virtually).

Correct AnswerverifiedShow Answer

An oil company has the opportunity to extract oil from a reserve in three years with a per barrel profit of $70 per barrel. The current market rate of interest is 4 percent. The present value of this future extraction is about

Correct AnswerverifiedShow Answer

From 1950 to 2017, according to data from the U.S. Energy Information Administration, the ratio of real GDP to energy consumption in the United States has been

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An example of a nonrenewable resource would be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the United Nations Food and Agriculture Organization, approximately what percentage of the world's fisheries in 2018 were overexploited?

Correct AnswerverifiedShow Answer

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