137.
Modernizing economies that have declining birthrates may still experience population
growth because of rapidly declining death rates.
138.
The demand for productive resources has grown faster than the supply of productive
resources for the past 150 years.
139.
The Economist‘s Commodity Price Index reveals that the supply of productive
resources has increased faster than the demand for decades.
19–62
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Accessibility:
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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?
140.
Demographers expect world population to peak and then decline in the twenty-first
century.
141.
Commodity prices are relatively stable from year to year.
142.
Per capita water use in the United States has steadily increased since 1973.
19–63
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written consent of McGraw-Hill Education.
out of natural resources.
Test Bank: I
Topic:
Resource Supplies: Doom or Boom?
143.
Per capita energy use in the United States has remained fairly constant since 1980.
144.
A British thermal unit is the amount of energy required to raise the temperature of one
liter of water by one degree Celsius.
145.
The average person in the United States generates about 10 pounds of trash per day.
19–64
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written consent of McGraw-Hill Education.
Test Bank: I
Topic:
Resource Supplies: Doom or Boom?
146.
The United States produces more than twice as much output per million BTUs of
energy consumed as it did in 1950.
147.
Increases in U.S. living standards have matched increases in per capita energy use.
148.
Energy demand is relatively stable over the course of a day.
19–65
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written consent of McGraw-Hill Education.
Learning Objective: 19–02 Describe why using a mix of energy sources is efficient, even if
some of them are quite costly.
Test Bank: I
Topic:
Energy Economics
149.
Electricity generating plants with low fixed costs tend to have high operating costs.
150.
In electricity generation, it is most economically efficient to use a single energy source.
151.
About three–fourths of U.S. electricity is generated using coal, natural gas, and
petroleum.
152.
About one–half of U.S. electricity is generated using petroleum.
153.
Renewable energy sources account for about 50 percent of U.S. electricity generation.
154.
The United States is in imminent danger of running out of energy.
155.
Renewable natural resources can never be exhausted.
19–67
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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: 19–03 Discuss why running out of oil would not mean running out of
energy.
Test Bank: I
Topic:
Running Out of Energy?
156.
Nonrenewable natural resources are fixed in supply (actually or virtually).
157.
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.
158.
Present value allows us to weigh the benefits and costs of using resources today or in
the future.
19–68
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written consent of McGraw-Hill Education.
Blooms: Understand
Di f f i cul t y :
02 Medium
Learning Objective: 19–04 Show how the profit motive can encourage resource conservation.
Test Bank: I
Topic:
Natural Resource Economics
159.
The user cost of a resource is the market price paid by the buyer of the resource.
160.
Higher user costs imply that a resource should be extracted more quickly.
161.
The total cost of extracting and selling a resource in a given year is the sum of the
extraction cost and user cost.
162.
The higher a resource’s current price, the more extraction should be delayed to a later
19–69
period.
163.
User cost is defined as the present value of the profit the company would earn if it
delayed extraction until next year.
164.
Weak property rights encourage faster extraction than would otherwise maximize the
long-term stream of profits.
165.
Elephants are moving closer to extinction in places where they are treated as private
property.
19–70
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written consent of McGraw-Hill Education.
FALSE
166.
The economic benefits of forests include provision of wildlife habitats, erosion
prevention, and oxygen production.
167.
In the United States and parts of Western Europe, the amount of land covered by forests
is increasing.
168.
In the absence of enforceable property rights, there is little incentive to preserve
resources for future use.
19–71
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written consent of McGraw-Hill Education.
TRUE
169.
Granting property rights to forestland tends to increase the rate at which the land is
deforested.
170.
A fishery is a stock of fish or other marine animal thought of as a logically distinct
group and usually identified by its location and species.
171.
Fish in the open ocean are protected by strong property rights.
19–72
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written consent of McGraw-Hill Education.
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
172.
Property rights over fish in the open ocean exist once the fish are caught.
173.
Fisheries have been overexploited relative to forests primarily because people care
more about trees than fish.
174.
TAC policies help reduce overfishing and reduce costs for fishers.
19–73
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written consent of McGraw-Hill Education.
species extinction.
Test Bank: I
Topic:
Renewable Resources
175.
Total allowable catch policies promote economic efficiency better than individual
transferable quotas.
176.
ITQs both limit catches and encourage fishing in the least costly way.
177.
ITQs generate the most efficient use of resources when everyone keeps and fills their
own quotas.
Multiple Choice Questions
178.
Solar energy, forests, fish, and oil are all examples of
A.
renewable resources.
179.
The key demand-side factors that cause the depletion of finite natural resources are
A.
population and productivity.
180.
Which of the following is a major reason to believe that we are not likely to run out of
natural resources?
A. slower GDP growth rates
19–75
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written consent of McGraw-Hill Education.
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: II
Topic:
Resource Supplies: Doom or Boom?
181.
The period since the Industrial Revolution has been extraordinary because, despite
unprecedented
D.
declines in economic efficiency, there has been a rise in population growth in
industrialized nations.
182.
In his Essay on the Principles of Population, Thomas Malthus argued that
A. human living standards could permanently rise above subsistence levels, so that
populations would grow exponentially.
19–76
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written consent of McGraw-Hill Education.
out of natural resources.
Test Bank: II
Topic:
Resource Supplies: Doom or Boom?
183.
Which one of the following statements is true? The fertility rates for major
industrialized countries in recent years show that Malthus’s theory regarding
population is
A.
valid because high standards of living have produced higher birthrates.
184.
The “replacement rate” is the birthrate necessary to
D.
maintain the standard of living of a nation.
185.
The total fertility rate of a nation is the
A.
total number of children a woman in the nation is capable of having during her lifetime.
19–77
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written consent of McGraw-Hill Education.
D. total number of women in the nation who are expected to have children during their
lifetime.
186.
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
A.
less than 1 birth per woman per lifetime.
187.
Based on the fertility-rate calculations for major industrialized countries, their
populations are expected to decline significantly in the coming years because
the
A. total fertility rate is higher than the replacement rate.
19–78
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written consent of McGraw-Hill Education.
Topic:
Resource Supplies: Doom or Boom?
188.
Which of the following countries had the highest fertility rate in 2015, according to The
World Factbook data?
A.
Japan
189.
Demographers predict that the worldwide total fertility rate will decline to one birth
per woman per lifetime. If this happens, then
A. each generation will be one-fourth as large as the previous one.
190.
The world’s population increased so rapidly from 1800 to the present day because of
higher
A.
birthrates and lower standards of living.
19–79
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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: II
Topic:
Resource Supplies: Doom or Boom?
191.
Demographers refer to this as the “demographic transition”: The reduction in death
rates brought about by rising standards of living “causes a temporary
population explosion
because parents—initially unaware that such a revolutionary change in death rates has taken
place—for a while keep having six or
more children—to ensure that at least two will
survive to adulthood.” For which major industrialized country could this statement be used
to explain its current population trend?
A.
United States
192.
According to demographers. The “demographic transition” resulting from an increase
in living standards follows a pattern of
D.
death rates rising as birthrates rise.
19–80
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written consent of McGraw-Hill Education.
Test Bank: II
Topic:
Resource Supplies: Doom or Boom?
193.
Demographers predict that declines in birthrates are in part due to
A.
more strict adherence to religious beliefs and practices regarding human reproduction.
194.
In modern economies, the cost of raising children has
A. decreased because of laxer enforcement of laws that make child labor illegal.
195.
According to Paul Ehrlich’s 1968 prediction in The Population Bomb, population
growth would result in
D.
reduced dependence on natural resources, leading to growth.