19–41
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C.
occur at the rate that would maximize the long-run stream of profits.
D.
stop.
87.
Mining of “conflict diamonds” tends to
A.
be more profitable, as warring factions are willing to pay more for the diamonds.
88.
Elephant populations have
A.
expanded everywhere because of state control of elephant populations.
19–42
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written consent of McGraw-Hill Education.
Blooms: Understand
Di f f i cul t y :
02 Medium
Learning Objective: 19–05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
89.
In countries like Botswana and Zimbabwe, local villages have been given property
rights over local elephants with the result that elephant populations
A. have been decimated as villagers try to maximize short-run profit.
90.
Renewable resources
A. can never be exhausted permanently.
91.
The amount of land covered by forests is
A.
declining in all nations.
19–43
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written consent of McGraw-Hill Education.
C.
increasing in places like the United States and Western Europe, while declining in
countries in South America.
D. declining in places like the United States and Western Europe, while increasing in
countries in South America.
92.
Some nations are increasing the amount of land covered by forests, while others are
experiencing rapid deforestation. According to economists, this is
largely because
A.
different nations have different ethical views regarding treatment of the environment.
93.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex
prefers to harvest and replant at a sustainable rate; Ben wants to harvest
as many trees as
possible to maximize short-run profit and then move on. They face the same production
costs. If property rights are poorly enforced or nonexistent,
A. Ben will choose to harvest as quickly as possible, but Alex will choose to harvest more
slowly and replant.
19–44
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written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Accessibility:
Keyboard Navigation
Blooms: Understand
Di f f i cul t y :
02 Medium
Learning Objective: 19–05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
94.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex
prefers to harvest and replant at a sustainable rate; Ben wants to harvest
as many trees as
possible to maximize short-run profit and then move on. They face the same production
costs. If property rights are well-defined and enforced,
A.
Alex could buy Ben‘s part of the land and harvest and replant in a sustainable manner.
95.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex
prefers to harvest and replant at a sustainable rate; Ben wants to harvest
as many trees as
possible to maximize short-run profit and then move on. They face the same production
costs. The forest is more likely to be harvested and replanted at a sustainable rate if
D.
Ben is given sole ownership of the property.
19–45
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 19–05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
96.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex
prefers to harvest and replant at a sustainable rate; Ben wants to harvest
as many trees as
possible to maximize short-run profit and then move on. They face the same production
costs. If no explicit property right is given over the forest land, then
D.
that implies that government owns and regulates its use.
97.
Which of the following best describes the typical growth pattern of trees for logging?
A.
Trees grow slowly at first, then grow exponentially until cut down.
98.
Forestry companies typically harvest and replant an area when trees are
A.
very young and growing slowly.
99.
In fisheries management, a fishery is defined as
A. an operation that breeds and releases fish and other marine animals into the wild.
100.
Which of the following is the best example of a fishery?
A. all marine life along the Great Barrier Reef
19–47
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: I
Topic:
Renewable Resources
101.
What was the largest U.S. fishery, in dollar terms, in 2014?
A.
Pacific halibut
102.
A fishery is typically identified by
A. location and size.
103.
It is generally easier to prevent deforestation than fishery collapse because
D.
All of the other possible answers are correct.
19–48
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written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Accessibility:
Keyboard Navigation
Blooms: Understand
Di f f i cul t y :
02 Medium
Learning Objective: 19–05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
104.
Property rights for fish from the open ocean
A.
do not exist.
105.
A fishery collapse
A.
necessarily happens when harvesting rates increase.
106.
Which of the following policies has succeeded in reducing fishery catch sizes?
A.
limiting the length of the catch season
19–49
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written consent of McGraw-Hill Education.
B.
limiting the number of boats allowed in a given area
C.
limiting catch size (TAC)
D. All of the other possible answers are correct.
107.
Which of the following policies has succeeded in reducing fishery catch sizes without
creating an “arms race” among fishers?
A.
limiting the length of the catch season
108.
Total allowable catch (TAC)
A.
explicitly limits the number of days in a season that particular fish may be caught.
19–50
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: I
Topic:
Renewable Resources
109.
In fisheries management, ITQ stands for
A. international transferable quota.
110.
Under a TAC system, fishing of a particular fishery is halted after
A. a predetermined time period.
111.
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, and Kara and Kyle
both catch their quota, their combined profit will be
A. $6,000.
112.
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?
A. $3
113.
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. Assume that the market price of sockeye salmon is $15 per ton. If Kara
pays Kyle $5 per ton for his ITQs, and if she then catches her new limit of 4,000 tons, her
profit would be
D. $4,000.
19–52
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 19–05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
114.
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
minimum amount per ton that Kara would have to offer Kyle to convince him to sell Kara
his ITQs?
D.
$7
115.
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. If the market price of Pacific halibut is $40 per ton, and Melanie
and Oli both catch their quota, their combined profit will be
A. $12,000.
19–53
116.
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. If the market price of Pacific halibut is $40 per ton, what is the
maximum amount Melanie would be willing to pay per ton for Oli’s ITQs?
D. $12
117.
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
A. $28,000.
118.
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. If the market price of Pacific halibut is $40 per ton, what is the
minimum amount per ton that Melanie would have to offer Oli to convince him to sell
Melanie his ITQs?
A. $8
119.
Individual transferable quotas (ITQs)
D.
have failed to limit catches or promote efficiency.
120.
Total allowable catch policies and individual transferable quotas both
A. limit catch sizes and promote efficiency.
19–55
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: I
Topic:
Renewable Resources
121.
Individual transferable quotas are limited in their effectiveness because
D.
they are not tradable.
122.
(Consider This) Governments‘ main economic concern about low birthrates is that
D.
smaller populations are more susceptible to epidemics.
123.
(Consider This) Which of the following nations has implemented policies that pay
women to have additional children?
A.
Russia
19–56
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written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Accessibility:
Keyboard Navigation
Blooms: Understand
Di f f i cul t y :
02 Medium
Learning Objective: 19–01 Explain why falling birthrates mean that we are not likely to run
out of natural resources.
Test Bank: I
Topic:
Resource Supplies: Doom or Boom?
124.
(Consider This) Which of the following nations has implemented policies that pay
women to have additional children?
D.
all of these nations
125.
(Consider This) Which of the following best explains why wind and solar power have
been slow to replace coal- and gas-based energy production?
A. Energy production with coal and gas generates less pollution.
19–57
126.
(Consider This) Which of the following must occur for wind and solar power to
displace coal and gas?
D.
Government must require that all wind and solar power plants be located in windy and
sunny places, respectively.
127.
(Consider This) The tragedy of the commons occurs primarily
A.
where government subsidies are present.
128.
(Consider This) Garrett Hardin‘s tragedy of the commons best applies to which of the
following issues?
A.
fracking for oil and natural gas
19–58
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written consent of McGraw-Hill Education.
D.
overfishing in international waters
129.
(Last Word) Most economists view economic growth as
D.
bad for the environment because people in richer economies tend to care less about the
environment.
130.
(Last Word) According to Yale University’s Environmental Performance Index (EPI),
A. countries with lower GDP per person tend to have healthier environments.
19–59
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 19–01 Explain why falling birthrates mean that we are not likely to run
out of natural resources.
Learning Objective: 19-05 Relate how to use property rights to prevent deforestation and
species extinction.
Test Bank: I
Topic:
Renewable Resources
Topic: Resource Supplies: Doom or Boom?
131.
(Last Word) In 2012, the countries with the highest scores on the Environmental
Performance Index were
A. the United States and Tanzania.
True / False Questions
132.
Human beings consume more both in absolute terms and on a per capita basis than they
did 200 years ago.
133.
Thomas Malthus argued that increases in living standards tend to reduce birthrates.
134.
A total fertility rate of 1.0 is necessary to keep the population constant over time.
135.
Most developed countries have fertility rates less than 2.1.
136.
A total fertility rate of approximately 1.0 will cause each generation to be half as large
as the preceding generation.