DOC PREVIEW
CU-Boulder ECON 3535 - Exam 4

This preview shows page 1-2 out of 6 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Name ______________________________________________________________University of Colorado at BoulderNatural Resource Economics, Econ 3535, Spring 2001Instructor: Vijaya Sharma, Ph.D.Exam 4Answer all 30 multiple-choice questions, each worth one point.1. Which is not the factor that optimists claim mitigates scarcity of natural resources? a. decline in population b. improvement in technologyc. decline in consumption in response to increase in prices of natural resourcesd. None of the above mitigates scarcity of natural resources.2. Which is the factor that pessimists claim would contribute to a severe scarcity of natural resources and thus the complete collapse of economic activities?a. population explosionb. limit to growth of technologyc. excessive pollution and environmental degradationd. all of the above3. Barnett and Morse in 1963 and then Barnett alone in 1979 analyzed the long-run timetrend of prices and unit costs of a number of natural resource commodities in the United States and also in many other countries. These studies were discussed in the class. Which one below represents the general conclusion of the two studies?a. There is clear evidence of natural resource commodities becoming increasingly scarce over time. b. There is no clear evidence of natural resource commodities becoming increasinglyscarce over time.c. The evidence is evenly split, some resources are becoming more scarce and some less scarce.d. Time trend of prices and unit costs is not relevant for a study of trend of scarcity.4. Margaret Slade in 1982 analyzed the time trend of prices of eleven minerals and fuels.What is the finding of this study?a. Prices of natural resource commodities have been decreasing over time. b. Prices of natural resource commodities have been increasing over time.c. Prices of natural resource commodities decreased in initial years, but they have now been increasing over time. d. Prices of natural resource commodities increased in initial years, but they have now been decreasing over time.5. Margaret Slade asserts in her 1982 article that the time trend of prices of natural resource commodities can be U-shaped? Which is the correct theoretical basis to support the assertion?a. Price of a resource would increase with progressive physical depletion of the resource.b. Price of a resource would decrease with improvements in the technology of extraction of the resource.c. In initial years the b above dominates and in later years the a above dominates.d. In initial years the a above dominates and in later years the b above dominates. 6. Ahrens and Sharma in 1997 examined whether the prices of minerals and fuels analyzed by Slade did indeed have a deterministic time trend. What is the finding of this study?a. Prices of all minerals and fuels had a deterministic time trend. b. Prices of all mineral and fuels had a stochastic (not a deterministic) time trend. c. Some prices had a deterministic time trend but others had a stochastic time trend.d. They conclusively showed that minerals and fuels were becoming increasingly scarce over time. 7. Which value do economists include in a benefit-cost analysis?a. total economic value (TEV)b. non-human value (NHV)c. total environmental value (TEV+NHV)d. TEV-NHV8. What is meant by the option value of a resource?a. the value of preserving a resource for future generationsb. the unknown value of presently undiscovered dimensions of a biological resourcec. the value of living biological species in their own right, distinct from their value to human societyd. the value of opportunity to utilize a resource in the future9. What is meant by the existence value of a resource?a. the market value of consuming/using a biological resourceb. the value of living biological species in their own right, distinct from their value to human societyc. the value conferred by the survival of a biological resource, unrelated to current orfuture use of the resource, but reflection of human altruism or sympathy for the survival of speciesd. the unknown value of presently undiscovered dimensions of a biological resource10. Which is correct?a. Non-human value is not included in a benefit-cost analysis. b. Existence value is not included in a benefit-cost analysis. c. Both a and b are correct. d. Both a and b are not correct.11. Which is most consistent with the John Rawl's sustainability principle?a. Natural resources should be equally distributed among generations. b. Natural resources should be allocated progressively more to future generations to ensure rising welfare. c. Natural resources should be allocated progressively less to future generations to ensure maximum welfare to the current generation. d. Natural resources should be allocated such that the future generations should be left, at a minimum, no worse off than the current generation. 12. What does Solow suggest for sustainability? a. Pass on non-declining value of capital (natural plus man-made) to future generations. b. Pass on non-declining value of natural capital to future generations. c. Preservation of all natural resources is necessary for sustainability.d. It is fine to have a deep concern for the future but be callous about the impoverished masses living in poverty today. 13. According to Hartwick-Solow rule of sustainability, how much should the present generation save and invest to maintain a constant value of capital?a. Invest the market value (P) of the extracted resource at the rate of discount (r)b. Invest the rental value () of the resource that has been extracted at the rate of discount (r)c. Invest the extraction cost (MEC) at the rate of discount (r)d. None of the above14. What is the strong sustainability index testing in the Pearce and Atkinson's paper "Measuring Sustainable Development?"a. non-declining value of capitalb. non-declining value of natural capitalc. non-declining flow of essential physical services of critical natural resourcesd. none of the above15. What is the weak sustainability index testing in the Pearce and Atkinson's paper "Measuring Sustainable Development?"a. non-declining value of capitalb. non-declining value of natural capitalc. non-declining flow of essential physical services of critical natural resourcesd. none of the above16. The safe minimum standard (SMS) of use of a renewable resource was explained in the class using the static fishery model. Which stock size of fish do economists consider as the SMS of conservation? a. the maximum stock size that


View Full Document

CU-Boulder ECON 3535 - Exam 4

Download Exam 4
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Exam 4 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Exam 4 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?