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111. Refer to the information above. If the market price of Pacific Halibut is $40 per ton, and
Melanie and Oli both catch their quota, their combined profit will be:
112. Refer to the information above. 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?
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113. Refer to the information above and 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:
114. Refer to the information above. 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?
115. Individual Transferable Quotas (ITQs):
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116. Total Allowable Catch policies and Individual Transferable Quotas both:
117. Individual Transferable Quotas are limited in their effectiveness because:
118. (Consider This) Governments’ main economic concern about low birthrates is that:
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119. (Consider This) Which of the following nations has implemented policies that pay
women to have additional children?
120. (Consider This) Which of the following nations has implemented policies that pay
women to have additional children?
121. (Consider This) In 2005, the company Changing World Technologies:
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122. (Consider This) Dozens of companies that convert corn sugars into ethanol:
123. (Last Word) Most economists view economic growth as:
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124. (Last Word) According to Yale University’s Environmental Performance Index (EPI):
125. (Last Word) In 2007, the countries with the highest scores on the Environmental
Performance Index were:
126. Human beings consume more both in absolute terms and on a per capita basis than they
did 200 years ago.
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127. Thomas Malthus argued that increases in living standards tend to reduce birthrates.
128. A total fertility rate of 1.0 is necessary to keep the population constant over time.
129. Most developed countries have fertility rates less than 2.1.
130. A total fertility rate of approximately 1.0 will cause each generation to be half as large as
the preceding generation.
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131. Modernizing economies that have declining birthrates may still experience population
growth because of rapidly declining death rates.
132. The demand for productive resources has grown faster than the supply of productive
resources for the past 150 years.
133. The Economist’s Commodity Price Index reveals that the supply of productive resources
has increased faster than the demand for decades.
134. Demographers expect world population to ultimately decline in the next century.
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135. Commodity prices are relatively stable from year to year.
136. Per capita water use in the United States has steadily increased since 1973.
137. Per capita energy use in the United States has remained fairly constant since 1980.
138. A British Thermal Unit is the amount of energy required to raise the temperature of one
litre of water by one degree Celsius.
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139. The average person in the United States generates about 10 pounds of trash per day.
140. The United States produces more than twice as much output per million BTUs of energy
consumed than it did in 1950.
141. Increases in U.S. living standards have matched increases in per capita energy use.
142. Energy demand is relatively stable over the course of a day.
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143. Electricity generating plants with low fixed costs tend to have high operating costs.
144. In electricity generation, it is most economically efficient to use a single energy source.
145. About one-half of U.S. electricity is generated using coal.
146. About one-half of U.S. electricity is generated using petroleum.
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147. Renewable energy sources account for about 50 percent of U.S. electricity generation.
148. The United States is in imminent danger of running out of energy.
149. Renewable natural resources can never be exhausted.
150. Non-renewable natural resources are fixed in supply (actually or virtually).
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151. Assuming that interest rates are positive, the present value of an $80 barrel of oil in 2
years is less than an $80 barrel today.
152. Present value allows us to weigh the benefits and costs of using resources today or in the
future.
153. The user cost of a resource is the market price paid by the buyer of the resource.
154. Higher user costs imply that a resource should be extracted more quickly.
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155. The total cost of extracting and selling a resource in a given year is the sum of the
extraction cost and user cost.
156. The higher a resource’s current price, the more extraction should be delayed to a later
period.
157. User cost is defined as the present value of the profit the company would earn if it
delayed extraction until next year.
158. Weak property rights encourage faster extraction than would otherwise maximize the
long-term stream of profits.
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159. Elephants are moving closer to extinction in places where they are treated as private
property.
160. The economic benefits of forests include provision of wildlife habitats, erosion
prevention, and oxygen production.
161. In the United States and parts of Western Europe, the amount of land covered by forests
is increasing.
162. In the absence of enforceable property rights, there is little incentive to preserve
resources for future use.
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163. Granting property rights to forest land tends to increase the rate at which the land is
deforested.
164. 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.
165. Fish in the open ocean are protected by strong property rights.
166. Property rights over fish in the open ocean exist once the fish are caught.
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167. Fisheries have been overexploited relative to forests primarily because people care more
about trees than fish.
168. TAC policies help reduce overfishing and reduce costs for fishers.
169. Total Allowable Catch policies promote economic efficiency better than Individual
Transferable Quotas.
170. ITQs both limit catches and encourage fishing in the least costly way.
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171. ITQs generate the most efficient use of resources when everyone keeps and fills their
own quotas.