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If dynamic resource allocation is applied to extraction of coal, then in the first year the quantity of coal extracted will be __ compared to static resource allocation A.be smaller B.be similar C.be zero D.be larger
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According to microeconomic theory, demand for energy by private businesses is A.conditional factor demand B.compensated factor demand C.Marshallian demand D.derived factor demand
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Econ Final_2
| Question | Answer |
|---|---|
| If dynamic resource allocation is applied to extraction of coal, then in the first year the quantity of coal extracted will be __ compared to static resource allocation A.be smaller B.be similar C.be zero D.be larger | A |
| According to microeconomic theory, demand for energy by private businesses is A.conditional factor demand B.compensated factor demand C.Marshallian demand D.derived factor demand | D |
| When doing horizontial summation of curves with several identical curves, what are the steps? | 1 Change to Q=x-P 2 Put in the number of firms Q=N(x-P) 3 Multiply out and then rearrange to NP=NX-Q 4 Simplify. |
| A distinguishing feature of growth monopoly is A.zero economic profit B.product differentiation C.small number of buyers D.small market size | A |
| Which of the following statements is correct? A.Ricardian view on scarcity of non-renewables is based on sustainable utilization of the resources B.Malthusian view on scarcity of non-renewables is optimistic compared to Ricardian view C.Ricardian vie | A |
| Consumer surplus is defined as A.the area below market price and above market supply B.the area under market demand and above market price C.the area between market demand and market supply D.the area under market demand and up to equilibrium quantity | B |
| Limits to Growth project is a reflection of A.the Malthusian view on resource scarcity B.the neo-Malthusian view on resource scarcity C.the institutional economics view on resource scarcity D.the Ricardian view on resource scarcity | A |
| The Hotelling's Rule implies that scarcity rent of a non-renewable energy resource must: A. increase at the rate higher than the market interest rate B. increase at the rate equal to the market interest rate C.increase at the rate lower than the market | B |
| In the Hotelling's Rule, the discount factor used A.is real market interest rate B.is real interest rate adjusted for risk C.does not distinguish between nominal and real interest rate D.is nominal market interest rate | C |
| which would be a good indicator of increasing scarcity of a non-renewable resources. A.An increasing supply of the resource B.A decreasing marginal user cost C.A decreasing price of the resource D.An increasing marginal extraction cost | D |
| demand for coal is given by P = 20 - Q where P is the price of coal in dollars per ton of coal, and Q is the quantity of coal. In addition, market supply of coal is given by P = 10 + Q. find producer surplus A.10 B.5 C.15 D.5 | D |
| Major difference between oligopoly and monopolistically competitive market is A.the size of the market B.product differentiation C.the number of buyers D.the number of sellers | D |
| In dynamic theoretical framework, monopoly's price of a non-renewable resource is A.always higher than PC B.always lower than PC C.lower than PC initially but higher eventually D.higher than PC initially but lower eventually | D |
| If dynamic resource allocation is applied to a renewable resource with infinite supply, then in the first year quantity of the resource used will be______compared to static allocation A.smaller B.larger C.similar D.zero | C |
| Suppose that the demand for electricity is given by P = 0.2 - 0.05E. If the current price of electricity is $0.1/KWH, what is the price elasticity of demand at that price? A.-1 B.-2 C.- 0.05 D.-0.5 | A |
| Fundamental economic indicators of scarcity are A.price, marginal user cost and marginal revenue B.price, marginal revenue and marginal extraction cost C.price, marginal extraction cost and marginal user cost D.profits, revenues and size of a deposit | C |
| Suppose that total costs of a coal mine in the short run are given by TC = 10 + 5Q + Q2 where Q is the quantity of coal produced in tons. What is the mine's average variable cost when it produces 10 tons of coal? A.$16 B.$15 C.$1 D.$25 | B |
| Marshallian demand for energy is derived on the basis of A.cost minimization by energy producing companies B.revenue maximization by growth monopolies C.profit maximization by private firms D.utility maximization by households | D |
| Public utilities are A.competitive private firms producing energy for profit B.state owned plants C.profit monopolies D.growth monopolies | B |
| A distinguishing feature of oligopoly is A.small number of buyers B.small number of sellers C.homogeneus product D.small market size | B |
| when the price of oil increases by 3%, the quantity of natural gas consumed increases by 1%. A.oil and natural gas are complements B.oil and natural gas are substitutes C.oil and natural gas are inferior goods D.oil and natural gas are normal goods | B |
| Coal is A.a renewable energy resource and a fossil fuel B.a renewable energy resource but not a fossil fuel C.a non-renewable energy resource and a fossil fuel D.a non-renewable energy resource but not a fossil fuel | C |
| In general, oligopoly as a market structure is characterized by A.profits larger than growth monopoly profits and quantity produced less than monopolistically competitive market B.profits larger than PC profits and quantity produced larger than monopo | A |
| One of the following conditions points to a resource being scarce. Which one? A.MUC < 0 B.MUC = P C.MUC > 0 D.MUC = 0 | C |
| Major difference between a perfectly competitive market and monopolistically competitive market is A.the number of sellers B.the number of buyers C.product differentiation D.the size of the market | C |
| OPEC was created in A.1962 B.1960 C.1959 D.1961 | B |
| Concession is defined as A.grant of property rights for a period of time B.contract between two companies C.agreement between two countries D.tax on oil producing companies | A |
| One main reason for the first oil shock to occur was A.political instability in Middle East B.monopoly power by OPEC C.low demand for oil D.US oil embargo | D |
| As a result of the first oil shock, oil prices increased A.in more than 3 times B.by 100% C.by 50% D.in more than 10 times | A |
| The largest proven oil reserves are located in A.Central and South America B.Middle East C.Eurasia D.North America | B |
| The largest number of OPEC members was A.11 B.10 C.5 D.13 | D |
| The following were OPEC's main areas of activity between 1960 and 1973 A.Tax system changes, partial nationalization and quantity control B.Price control, quantity control and partial nationalization C.Complete nationalization, tax system changes and pr | A |
| US oil embargo was introduced in A.1972 B.1970 C.1971 D.1973 | D |
| Prior to 1960, oil market was mostly subject to A.monopolistic competition B.monopoly power by seven sisters C.oligopoly D.perfect competition | B |
| How many historical periods of the oil market development are identified in lecture notes? A.3 B.4 C.5 D.6 | C |
| Potential reserves of oil are defined as A.resources recoverable under existing economic and technological conditions B.all reserves on the basis of geological and geophysical evidence C.resources recoverable under existing economic conditions D.resourc | B |
| Currently there are A.10 member countries in OPEC B.13 member countries in OPEC C.5 member countries in OPEC D.1 member countries in OPEC | D |
| In terms of total resreves of oil, Canada has A.the fifth largest reserves B.the largest reserves C.the second largest reserves D.the third largest reserves | C |
| Who is the largest producer of oil in the world? A.Saidu Arabia B.Russia C.USA D.Canada | A |
| Initially, OPEC was created by A.five countries B.ten countries C.thirteen countries D.eleven countries | A |
| In the 1960-1973 period, OPEC's monopoly power was mostly due to A.shortage of oil outside of OPEC B.low prices of OPEC's oil C.US oil embargo D.decrease in demand for oil | A |
| Proven reserves of oil are defined as A.resources recoverable under existing technological conditions B.resources recoverable under existing economic and technological conditions C.all reserves on the basis of geological and geophysical evidence D.resou | B |
| In development of oil market, a distinguishing feature of the period prior to 1960 was A.creation of OPEC B.monopolistic behaviour of Saudi Arabia C.economic boom in Europe in the 1950s D.co-existence of oil producing companies and oil producing countri | D |
| The following were the major features of the first oil shock: A.Oil shortage outside OPEC, low demand for oil and devaluation of US dollar B.Low demand for oil, bad economic conditions and US oil embargo C.Seven sisters' monopoly power, bad economic con | D |
| The first oil shock occured in A.1971 B.1972 C.1970 D.1973 | D |
| The lowest oil price in the 1990s was observed in A.1995 B.1996 C.1998 D.1997 | C |
| Since 1973, new OPEC activities included A.Price control and partial nationalization of oil fields B.Partial nationalization of oil fields and quantity control C.Simplification of tax schemes and complete nationalization of oil fields D.Simplification o | C |
| Official oil price was directly tied to the A.Saudi Arabia official oil price B.US oil price C.OPEC's basket price D.spot oil price | A |
| One single action that significantly affetced oil prices at the beginning of 1979 was A.production cuts by Iraq B.production cuts by Iran C.production cuts by both - Iran and Iraq D.production cuts by Saudi Arabia | D |
| Which of the following periods is associated with the second oil shock? A.1980-1982 B.1978-1980 C.1982-1984 D.1984-1986 | B |
| In 1979, when oil prices were already high, what was the reason for them to get even higher? A.Expectations of rising oil prices B.Low long-run elasticity of oil demand C.Expectations of decreasing prices D.High long-run elasticity of oil demand | A |
| After 1983, OPEC's market share was A.more than 50% B.more than 60% C.less than 40% D.more than 40% | D |
| The largest producers of oil within OPEC as of the end of 1999 were A.Saudi Arabia, Iran and Venezuela B.Saudi Arabia, Iran and UAE C.Saudi Arabia, Kuwait and Nigeria D.Saudi Arabia, Kuwait and Iran | A |
| The first consequence of the second oil shock was A.re-allocation of OPEC's quotas B.a gap between official price of oil and spot price C.an increase in demand for oil D.a decrease in demand for oil | B |
| Within OPEC, Saudi Arabia's share in oil production is A.less than 10% B.more than 30% C.more than 10% but less than 20% D.more than 20% but less than 30% | B |
| The main features of oil market over the 1973-1989 period were A.highly elastic short-run demand for oil, friction about target price within OPEC and high inflation B.low demand for OPEC's oil, friction about target price within OPEC and production | C |
| When did Saudi Arabia link official oil prices to spot prices? A.1983 B.1986 C.1984 D.1985 | D |
| The second oil shock started in A.1978 B.1979 C.1977 D.1980 | A |
| After the second oil shock, the OPEC's market share A.decreased B.remained unchanged C.increased D.decreased initially but increased eventually | A |
| The period of the 1990s was associated with A.disagreement between OPEC and independent oil producers B.monopoly power of OPEC C.a price war between OPEC and independent oil producers D.cooperation between OPEC and independent oil producers | D |
| OPEC set target price of $2 per barrel of oil since A.1992 B.1990 C.1991 D.1993 | B |
| The second oil shock started A.with Iranian revolution B.with Iran-Iraq War C.with US oil embargo D.with Arab Israeli War | A |
| Collapse of OPEC's pricing structure occured in A.December of 1978 B.December of 1980 C.December of 1979 D.December of 1981 | B |
| The main disagreement amongst OPEC members in mid-1970 was A.spot price of oil B.total quantity of oil supplied C.official price of oil D.allocation of individual oil quotas | C |
| The Gulf War increased oil prices in A.1993 B.1992 C.1990 D.1991 | D |
| Suppose that a monopoly owns two plants each of which has the same marginal cost function given by MC = 2 + 4Q. What is aggregate marginal cost function? A.MC = 2 + 4Q B.MC = 2 + 8Q C.MC = + 4Q D.MC = 2 + 2Q | D |
| In the market sharing cartel, the assumption of an increasing marginal cost would A.affect market shares B.be consistent with the model C.violate utility maximization principle D.violate equi-marginal principle | D |
| In the dominant-firm cartel model, in order to set the cartel's price the dominant firm derives A.residual marginal cost B.reaction function C.profit fucntion D.residual demand | D |
| Suppose that four countries formed a cartel to sell oil. Same constant marginal extraction cost of $40 per barrel for all. What is the cartel's aggregate marginal cost? A.$10 per barrel B.$160 per barrel C.It depends on demand for oil D.$40 per barrel | D |
| In the hybrid cartel model, the number of economic entities involved is A.5 B.2 C.3 D.4 | C |
| Suppose that demand for cartel's oil is given by P = 50 - 0.1Q . If the cartel's aggregate marginal cost is given by MC = 10 + 0.2Q, what is the cartel's profit maximizing price of oil? A.$47/b B.$37/b C.$30.0/b D.$40.0/b | D |
| Canada is A.a net importer of oil B.dependent on US oil C.the largest producer of oil in North America D.a net exporter of oil | D |
| How many models of cartel's behaviour are considered in this topic? A.4 B.1 C.3 D.2 | A |
| Demand for cartel oil is given by P = 50 - 0.1.P =($/b), and Q = thousands barrels per day (TBD). Each cartel member has marginal cost given by MC = 30. P and Q for each member A.$30/b and 33 TBD B.$40/b and 67 TBD C.$40/b and 33 TBD D.$30/b and 67 TBD | C |
| If the hybrid model was used to explain OPEC behavior, what would be the role of Saudi Arabia? A.Cartel's core B.Price mazimizer C.Output maximizer D.Competitive fringe | A |
| In the market-sharing cartel model, marginal cost is assumed to be A.constant B.increasing C.zero D.decreasing | A |
| In the dominant-firm cartel model, how many economic entities are present? A.2 B.3 C.1 D.4 | A |
| A distinguishing feature of price maximizers in the hybrid cartel models is A.revenue maximization B.constant marginal cost C.down-sloping supply D.increasing marginal cost | C |
| One of the main assumptions of the multi-plant monopoly model is A.cost minimization B.individual ownership C.sole ownership D.equal quotas | C |
| In the dominant-firm cartel model, the dominant firm's marginal cost curve is A.constant B.decreasing C.U-shaped D.the lowest | D |
| In the dominant-firm cartel model, competitive fringe is A.a price taker B.revenue maximizer C.utility maximizer D.a price maker | A |
| Which of the following is one of the main assumptions in the market-sharing cartel model? A.Sole ownership B.Pre-agreed market shares C.Increasing marginal extraction cost D.Public ownership | B |
| The main source of oil in Canada over last 50 years has been A.Western Canada Sedimentary Basin B.oil sands C.Atlantic Canada off-shore oil deposits D.OPEC's oil | A |
| In the multi-plant monopoly model of cartel's behavior, major economic principle used is A.Pareto efficiency B.utility maximization C.average cost pricing D.equi-marginal principle | D |
| Canada's share of oil production in North America is A.is more than 5% but less than 10% B.less than 5 % C.is more than 10% but less than 15% D.is more than 15% | D |
| Proven reserves of natural gas depend on A.geological knowledge only B.geological knowledge and demand for natural gas C.geological knowledge, existing technology and demand for natural gas D.demand for natural gas only | C |
| The largest reserves of natural gas are A.in North America B.in Middle East C.in Asia D.in Europe | B |
| According to lecture notes, over last 10 years Canadian resrves to production ratio has been A.increasing B.cyclical C.decreasing D.stable | C |
| The largest operator of Canadian domestic natural gas pipelines is A.TransCanada Pipelines B.Irwin C.Imperial Oil D.Canada's National Energy Board | A |
| Wellhead price of natural gas is A.the retail price for end users B.the price of natural gas extractor C.the price received by natural gas producer for natural gas deliveries to a pipeline D.the input price of producers | B |
| The primary source of the US natural gas imports is A.Mexico B.Russia C.Saudi Arabia D.Canada | D |
| Canada is A.a net importer of natural gas B.a net exporter of natural gas C.the largest consumer of natural gas in North America D.the largest producer of natural gas in North America | B |
| Who is the world's largest producer of natural gas? A.Saudi Arabia B.USA C.Russia D.Canada | C |
| In terms of countries, the largest reserves of natural gas are in A.Canada B.Saudi Arabia C.USA D.Russia | D |
| In North America in general, natural gas is measured in terms of A.meters B.cubic feet C.British Thermal Units D.calories | B |
| The largest portion of Canadian natural gas comes from A.Western Canada Sedimentary Basin B.Manitoba C.British Columbia D.Atlantic Canada | A |
| According to lecture notes, the price of natural gas depends on A.the pricee of coal and solar energy B.the prices of renewable energy resources C.the prices of other fossil fuels D.the price of oil, natural gas in storage and weather | D |
| Fieldgate price of natural gas is A.the retail price for end users B.the price received by natural gas producer for natural gas deliveries to a pipeline C.the input price of producers D.the price of natural gas extractor | B |
| The world market for natural gas is subject to A.perfect competition B.monopolistic competition C.monopoly power D.oligopoly | D |
| Burnertip price of natural gas is A.the price received by natural gas producer for natural gas deliveries to a pipeline B.the retail price for end users C.the price of natural gas extractor D.the input price of producers | B |
| Currently natural gas prices are mostly reported in A.dollars per giga-Joul B.dollars per thousand cubic metres C.dollars per million BTUs D.dollars per thousand cubic feet | A |
| Natural gas is A.80% methane B.a fossil fuel C.a renewable energy resources D.a bi-product of oil production | B |
| A turning point in natural gas prices occured A.since 2000 B.in the 1990s C.after the second oil shock D.after the first oil shock | C |
| In lecture notes, the following prices of natural gas are discussed: A.Wellhead price, fieldgate price and transportation price B.Wellhead price, fieldgate price and burnertip price C.Wellhead price, retail price and input price D.Wellhead price, input | B |
| Natural gas prices in Canada were regulated until A.1980 B.1995 C.1985 D.1990 | C |
| What fuel does currently have the largest electricity generating capacity in the world? A.Oil B.Uranium-235 C.Natural gas D.Coal | D |
| Peak demand for electricity is defined as A.maximum amount of electricity a machine (plant) can generate measured in kilowatts B.electricity produced over a period of time, divided by the amount of electricity it could have produced C.the ratio of ele | D |
| Canada has A.between 3% and 4% of the world's electric capacity B.less than 2% of the world's electric capacity C.between 2% and 3% of the world's electric capacity D.more than 4% of the world's electric capacity | A |
| Major distinguishing feature of natural monopolies is A.markup pricing B.efficient scale of operation C.large variable costs D.large economies of scale | D |
| Electric utilities are A.firms that produce and sell products other than electricity but generate electricity for their own needs B.firms specifically organized to generate and sell electricity to consumers C.firms specifically organized to produce el | B |
| In terms of installed electric capacity, the largest potential is A.in China B.in Japan C.in USA D.in Russia | C |
| Capacity factor of electric utility is defined as A.maximum amount of electricity a machine (plant) can generate measured in kilowatts B.the amount of electricity that a machine (plant) produces over a period of time, divided by the amount of electric | B |
| In general, average total cost curve of electric utility is A.U-shaped B.constant C.decreasing D.increasing | C |
| One of the two basic techniques in the demand side management is A.An increase in the number of users B.A decrease in capacity factor C.Two-part tariff D.An increase in electric capacity | C |
| Canada is A.the largest producer of electricity in North America B.the largest consumer of electricity in North America C.a net importer of electricity D.a net exporter of electricity | D |
| Electric capacity is defined as A.maximum amount of electricity demanded at a specific point in time; is measured in kilowatts B.maximum amount of electricity a machine (plant) can generate measured in kilowatts C.the ratio of electricity consumed ove | A |
| Price regulation of natural monopolies is based on A.two-part tariff pricing rule B.average cost pricing rule C.marginal cost pricing rule D.markup pricing rule | B |
| Large economies of scale in electricity markets arise as a result of A.large marginal costs and large fixed costs B.large variable costs and small fixed costs C.increasing prices of fuel and small fixed costs D.large fixed costs and small variable costs | D |
| Load factor in electricity sector is defined as A.the ratio of electricity consumed over some period of time to peak demand B.maximum amount of electricity a machine (plant) can generate measured in kilowatts C.the amount of electricity that a machine ( | A |
| Demand side management in electricity markets is associated with A.an increase in demand to meet an increase in population B.a decrease in demand to increase the price of electricity C.an increase in demand to promote regional economic development D.a d | D |
| In terms of hydro-electricity, the world's largest producer is A.Zaire B.Canada C.Russia D.Brazil | B |
| Which country depends the most on nuclear electricty? A.Slovakia B.Belgium C.France D.Luthuania | D |
| Self-generators of electricity are A.firms that produce and sell products other than electricity but generate electricity for their own needs B.firms specifically organized to generate and sell electricity to consumers C.firms specifically organized t | A |
| Diseconomies of scale in electricity sector are associated with A.decreasing fixed costs B.increasing returns to scale C.increasing fuel costs D.constant returns to scale | C |
| A major drawback of the life-cycle costing method is A.the omission of social costs B.the use of capital recovery factor C.the use of present values D.the omission of social benefits | D |
| A major drawback of sollar energy utilization is A.low efficiency B.discontinuous supply C.large marginal costs D.large variable costs | A |
| Fundamental element of any PV-System is A.solar cell B.monitoring system C.arrays D.batteries | A |
| Major producer of solar energy in the world is A.USA B.Germany C.Canada D.Japan | A |
| In terms of social cost-benefit analysis, a PV-system would be A.less preferred compared to traditional electricity generators B.the most economically efficient C.the least economically efficient D.more preferred compared to traditional electricity gene | D |
| Currently the most competitive renewable resource in the world is A.bioenergy B.solar energy C.wind energy D.geothermal energy | C |
| In general, any PV-system compared to traditional electricity generators has A.low initial fixed costs and high installation costs B.high initial fixed costs but low installation costs C.low initial fixed costs but high variable costs D.high installatio | B |
| Bioenergy refers to A.Biomass and biofuels B.Biomass and biogas C.Biomass, biofuels and biogas D.Biogas and biofuels | C |
| What renewable resources are discussed in this topic? A.Solar energy, bioenergy, wind energy, geothermal energy B.Solar energy, bioenergy, hydroelectricity, geothermal energy C.Solar energy, bioenergy, wind energy, nuclear energy D.Solar energy, bioener | A |
| Biomass is defined as A.burning biological materials to generate heat B.fermenting biological waste to generate methane C.fermentation of organic matter including manure, sewage sludge,etc., under anaerobic conditions. D.fermenting biological material | C |
| In general, a wind turbine captures A.more than 70% of moving air B.more than 60% of moving air C.more than 50% of moving air D.no more than 50% of moving air | D |
| PV-System implies A.present value system B.present volume system C.photovoltaic system D.photo value system | C |
| Life cycle costing method is based on calculation of total costs of a system A.in terms of their future values B.over its service life in terms of their present values C.over its service life D.over its service life in terms of their future values | B |
| Capital recovery factor is A.the ratio of a constant annuity to the present value of receiving that annuity for a given length of time. B.the ratio of a constant annuity's future value to its present value C.the sum of a constant annuity's future valu | A |
| There are two basic solar energy collection and utilization systems. They are A.general and specific B.individual and grid connected C.direct and indirect D.passive and active | D |
| The only renewable energy resource that does not directly or indirectly come from the sun is A.biomass B.biofuel C.geothermal energy D.wind energy | C |
| Compared to energy systems based on fossil fuel utilization, total costs of solar energy utilization are A.comparable B.higher C.the same D.lower | B |
| Solar cells of a PV-System are made of A.helium B.magnium C.heavy metals D.semi-conductors | d |
| The largest producer of wind energy in the world is A.Germany B.USA C.Canada D.Japan | a |
| The largest producer of geothermal energy in the world is A.USA B.Germany C.Japan D.Canada | a |
| The following four rent collection techniques are discussed in this topic A.taxes, competitive bidding, marketing boards, multinational corporations B.taxes, multinational corporations, marketing boards, public-private ownership C.taxes, competitive bid | C |
| In original formulation of the concept of rent, Ricardo claimed that A.markets for capital and labour are not perfectly competitive B.no rent is earned on marginal land C.supply of land is unlimited D.no rent is earned on the most productive land | B |
| Return on a fixed factor of production is called A.economic profit B.economic rent C.accounting profit D.normal profit | b |
| Originally marketing boards were established in A.transportation sector B.energy sector C.communication D.agriculture | d |
| Quasi rent is defined as A.the difference between marginal revenue and marginal production cost that can only come about as a result of the natural or policy-induced scarcity of a resource B.the excess of the market value of supramarginal units of nat | d |
| The difference between taxes and royalties is A.the price of energy resources B.the amount of revenue earned from the sale of energy resources C.the tax base D.the marginal extraction costs of energy resources | c |
| Compatitive bidding is usually applied to A.new deposits of energy resources B.similar deposits of energy resources C.old deposits of energy resources D.marginal deposits of energy resources | a |
| A major drawback of marketing boards is A.inability to control producers of energy resources B.high monopoly power C.inability to set a fair price D.inability to capture normal profit | b |
| Scarcity rent is defined as A.the excess of the market value of supramarginal units of natural resources over current scarcity rents B.the difference between total revenue and total variable costs C.the difference between marginal revenue and marginal | c |
| In general, a tax on Ricardian rent A.affects the long-run behaviour of a resource company B.affects behaviour of a resource company in both, the short-run and long-run C.does not affect behavior of a resource company in both, the short-run and long-run | c |
| In general, a tax on quasi rent A.affects the short-run behaviour of a resources firm B.affects behaviour of a resource company in both, the short-run and long-run C.does not affect behavior of a resource company in both, the short-run and long-run D.af | d |
| As discussed in lecture notes, political infrastructure includes the following four groups: A.government, consumers, government bureaucracy, owners and workers of resource firms B.government, parliament, government bureaucracy, owners and workers of res | a |
| Ricardian or differential rent is defined as A.the excess of the market value of supramarginal units of natural resources over current scarcity rents B.the difference between total revenue and total variable costs C.the difference between total revenu | a |
| In general, a tax on scarcity rent A.does not affect behavior of a resource company in both, the short-run and long-run B.affects behaviour of a resource company in both, the short-run and long-run C.affects the short-run behaviour of a resources firm D | a |
| Property tax is A.percentage of the total revenue earned from the sale of energy resources B.percentage of the value of a site C.percentage of the profit earned by a resource extractor D.a fixed fee per unit of land of a site | b |
| A major advantage of a crown corporation is A.lower operating costs B.public control over production and managerial decisions C.low sensitivity to political demands D.low monopoly power | b |
| Economic theory states: do not tax A.scarcity rent B.Ricardian rent C.differential rent D.quasi rent | d |
| The term quasi rent was introduced by A.Marshall B.Malthus C.Keynes D.Ricardo | a |
| If a government fails to collect economic rents associated with energy resources then A.it will not be able to finance social programs B.it will not be able to finance social transfers C.it will create inefficiencies in an economy D. it will decrease t | c |
| As an owner of energy resouces, any state faces the following three problems A.rent-seeking, management of political infrastructure and rent distribution B. rent collection, rent distribution and management of political infrastructure C.rent-seeking, r | b |
| In order to achieve sustainability, a higher depletion rate would require A.a lower consumption share B.a lower environmental amenity C.a lower rate of people's time preferences D.a lower rate of technological progress | B |
| In order to decrease the depletion rate, it is possible to A.introduce competitive bidding for new deposits of energy resources B.introduce a depletion subsidy C.introduce a depletion tax D.introduce a tax on technology | c |
| Social dimension of sustainable development is associated with A.clean environment, biodiversity and optimal management of resources B.inter- and intra-generational equity and social well-being C.Pareto optimal path of an economic system D.perfectly com | b |
| In order to achive sustainability faster it is necessary A.to keep the rate of people's time preferences at a high level B.to keep the rate of people's time preferences at a low level C.to keep the rate of technological progress steady D.to keep the rat | b |
| An exmaple of economic stock would be A.investment B.labour C.population D.consumption | c |
| Suppose that the current rate of technological advances in an economy is 4%. If people care only for consumption, then in order to achieve sustainability of the economy A.people have to discount future at the rate lower than 4% B.people have to discou | a |
| Environmental dimension of sustainable development is associated with A.perfectly competitive markets in all sectors of the economy B.Pareto optimal path of an economic system C.inter- and intra-generational equity and social well-being D.clean environm | d |
| Suppose that the rate of technological progress in an economy is 10%, depletion rate is zero, environmental amenity is 50% and consumption share in utility is also 50 %. What maximum rate of people's time prefereces is required to maintain sustainabil | d |
| Economic dimension of sustainable development is associated with A.Pareto optimal path of an economic system B.clean environment, biodiversity and optimal management ofresources C.inter- and intra-generational equity and social well-being D.perfectly co | a |
| In the cake-eating model with environmental amenity discussed in lecture notes, environmental amenity is incorporated in A.utility function B.production function C.consumption D.capital accumulation equation | a |
| Sustainable developemnt includes A.fiscal, monetary and economic dimensions B.social, environmental and economic dimensions C.social, military and fiscal dimensions D.fiscal, monetary and environmental dimensions | b |
| Economic flows are defined as A.variables that represent the state of an economy at a point in time B.accumulated capital stock minus depreciation C.variables that describe a change of an economy over time D.all macroeconomic variables that do not chang | c |
| Comprehensive sustainable development means A.only combination of all three dimensions of sustainable development B.environmental and economic dimensions of sustainable development C.social and economic dimensions of sustainable development D.any two ou | a |
| Economic stocks are defined as A.variables that represent the state of an economy at a point in time B.all macroeconomic variables that do not change over time C.variables that describe a change of an economy over time D.accumulated capital stock minus | a |
| A cake-eating model discussed in lecture notes, is associated with A.non-renewable resources only B.energy resources C.renewable resources only D.both renewable and non-renewable resources | a |
| A major conclusion from a cake-eating model without environmental amenity is that The rate of technological progress must A.be no less than the rate of people's time preferences B.be always equal to the rate of people's time preferences C.be lower tha | A |
| In an economic sense, sustainability constraint implies A.a non-decreasing utility over time B.a non-increasing utility over time C.a constant utility over time D.a cyclical utility over time | a |
| A typical problem of optimal economic growth and development is a problem of A.cost minimization B.utility maximization C.total revenue maximization D.profit maximization | b |
| An example of economic flow would be A.capital B.population C.labour D.technology | b |
| If people do care for environmental amenity then A.a higher rate fo technological progress is required to achieve sustainability of the economy B.a lower rate fo technological progress is required to achieve sustainability of the economy | a |
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