Oil and Natural Gas Assignment PDF
Added on 2021-05-27
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Question 1: Which of the following are considered nonrenewableresources?Select all that apply.ooOilooFishooTreesooNatural gasooWheatAnswer 1: Oil and Natural GasQuestion 2: According to Hotelling's Rule:Select all that apply.ooThe price of a nonrenewable resource will grow based on the interest rateooNonrenewable resource rent is maximized when the growth of the resourceprice equals the interest rateooIf the price of a nonrenewable resource grows faster than the interest ratethen there is an incentive to extract the resource quicklyooOpportunity cost is important when deciding whether to extract or leave anonrenewable resource in the groundooThe price of a nonrenewable resource falls as the resource is depletedAnswer 2: Nonrenewable resource rent is maximized when thegrowth of the resource price equals the interest rate.The price of a nonrenewable resource will grow basedon the interest rateQuestion 3: Which of the following apply to renewable resourceswitha growth function?Select all that apply.ooCarrying capacity determines the maximum quantity the resource canexist atooEconomic rents are depleted under open access if the resource isnonexcludable and rivalooThe optimal level of extraction effort rises if the marginal revenue ofextraction risesooThe optimal level of extraction effort falls if the marginal cost ofextraction fallsHarvesting at the maximum sustainable yield maximizes economic
rentAnswer 3: Carrying capacity determines the maximum quantitythe resource can.The optimal level of extraction effort rises if themarginal revenue of extraction risesHarvesting at the maximum sustainable yieldmaximizes economic rentQuestion 4: According to the IPAT equation:Select all that apply.ooAdvancements in clean technology reduce our impact on theenvironmentooIncreasing consumption per person increases our impact on theenvironmentooPopulation growth doesn't matterooOverconsumption is not possibleooSustainability requires that population and consumption per person bothdeclineAnswer 4: Increasing consumption per person increases ourimpact on the environmentOverconsumption is not possibleQuestion 5: According to the Easterlin paradox:Select all that apply.ooPoor individuals are happier than rich individualsooThere exists diminishing returns for moneyooRich individuals are only slightly happier than middle class individualsooMoney buys happiness no matter how much you already haveooMoney buys happiness if you are very poorAnswer 5: There exist diminishing returns for money Rich individuals are only slightly happier than middleclass individuals
Question 6: Which of the following can potentially impact theeffectiveness of government and policy?Select all that apply.ooPublic supportooUncertaintyooMonetary supportooLobbyingooIncomplete informationAnswer 6: Public support UncertaintyQuestion 7: Incentive based regulation is often preferable tocommand and control for which of the following reasons?Select all that apply.ooIt requires more informationooIt incentivizes research and development for clean technologyooIt is the only way to achieve the optimal level of pollutionooIt encourages continual reduction in pollutionooIt is easier to achieve cost-effectivenessAnswer 7: It incentivizes research and development for cleantechnology It encourages continual reduction in pollutionIt is easier to achieve cost-effectivenessQuestion 8: Which of the following hold true for cost-effectivepollution control?Select all that apply.ooPollution is reduced at the lowest possible costooThe marginal cost of reducing pollution is equal at all pollution sourcesooAll pollution sources reduce pollution by the same amountooThe total cost of reducing pollution is equal at all pollution sourcesooCost effectiveness is only achievable if all pollution sources have the sameabatement cost curve
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