Question 1

Other things equal, in the absence of Environmental Protection Agency pollution credits, biodiesel becomes economically viable (as or less costly than using oil)when oil prices reach _____ or more per barrel.

Accepted Answer

The passage states that biodiesel becomes economically viable when oil prices reach $110 or more per barrel.

Question 2

ACME Corporation used to produce $50 worth of goods (in 2000 dollars)per million BTUs used. Now it produces $60 worth of goods (in 2000 dollars)per million BTUs. Based on this, we can conclude

Accepted Answer

ACME Corporation is now producing more value ($60 vs. $50) for the same amount of energy (per million BTUs), indicating an improvement in energy efficiency.

Question 3

Which of the following is considered a renewable natural resource?

Accepted Answer

Aquifers are considered a renewable natural resource because they can be replenished naturally by precipitation and surface water, assuming water is not withdrawn at a faster rate than it is replenished.

Question 4

As of 2017, approximately 62 percent of U.S. electricity is generated from

Accepted Answer

As of 2017, the majority of U.S. electricity was generated from fossil fuels, with coal and natural gas combined accounting for approximately 62 percent of total electricity generation. Coal and natural gas are the two primary sources of electricity in the U.S., with natural gas surpassing coal in recent years due to its lower greenhouse gas emissions and cost.

Question 5

In the United States in 2017, one million BTUs of energy yielded _______ worth of goods and services (in 2009 dollars).

Accepted Answer

The answer of In the United States in 2017, one...

Question 6

Which of the following is considered a renewable natural resource?

Accepted Answer

Solar power is considered a renewable natural resource because it is derived from the sun, which is a virtually inexhaustible source of energy on the human timescale. Unlike fossil fuels such as natural gas and coal, or non-renewable resources like copper, solar energy can be continually replenished.

Question 7

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil)when oil prices reach _____ or more per barrel.

Accepted Answer

The answer of Other things equal, ethanol made from corn...

Question 8

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

Coal is considered a nonrenewable natural resource because it takes millions of years to form, and reserves can be depleted much faster than they are naturally replenished.

Question 9

Alternative fuels become more economically viable as

Accepted Answer

When the price of oil rises, alternative fuels become more economically viable because they become more competitive in price compared to traditional oil, making them a more attractive option for consumers and businesses.

Question 10

To achieve economic efficiency in energy use, an economy

Accepted Answer

Diverse energy sources can enhance efficiency by allowing an economy to exploit the advantages of each source, leading to a more resilient and adaptable energy supply.

Question 11

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Accepted Answer

Renewable natural resources are those that can replenish themselves over time if used responsibly and at rates that allow for their natural regeneration, such as solar energy, wind, and biomass.

Question 12

Which of the following is considered a nonrenewable natural resource?

Accepted Answer

Tin is a nonrenewable natural resource because it is a mineral that cannot be replenished on a human timescale once it is extracted and used.

Question 13

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil)when oil prices reach _____ or more per barrel.

Accepted Answer

The answer of Other things equal, extracting oil from shale...

Question 14

Suppose that a city's energy demand is 30 megawatts during off-peak times and 40 megawatts at its peak. The city has been purchasing electricity from an outside company but has decided to build its own power plants to satisfy all of its energy demand. The city can choose to build one or more plants to generate the needed electricity. There are three types of plant: coal, natural gas, and hydroelectric. The three types of plants face the costs appearing in the table. Assuming the city's power needs will not change in the foreseeable future, to achieve the lowest cost of power generation, the city should build

Accepted Answer

The answer of  Suppose that a city's energy demand...

Question 15

Productive inputs that are actually or virtually fixed in supply are known as

Accepted Answer

Nonrenewable natural resources are considered fixed in supply because they cannot be replenished within a human time frame, making them virtually or actually fixed in terms of availability.

Question 16

In 2017, the primary sources of U.S. electricity generation, in order from largest to smallest, were

Accepted Answer

In 2017, the primary sources of U.S. electricity generation were natural gas, coal, nuclear, and hydropower, in that order. Natural gas surpassed coal as the largest source of electricity generation in the U.S. for the first time in 2016, and this trend continued into 2017.

Question 17

Because of Environmental Protection Agency pollution credits to biodiesel producers, biodiesel becomes economically viable (as or less costly than using oil)when oil prices reach _____ or more per barrel.

Accepted Answer

Biodiesel becomes economically viable compared to using oil when oil prices reach $55 or more per barrel, due to the support of Environmental Protection Agency pollution credits to biodiesel producers. This makes biodiesel a competitive alternative at this price point.

Question 18

According to the concept of present value, a $50 barrel of oil today is worth

Accepted Answer

The concept of present value states that a sum of money today is worth more than the same sum in the future due to its potential earning capacity. This is the core principle of time value of money. Therefore, a $50 barrel of oil today is worth more than a $50 barrel in 2 years because the money could be invested and earn a return over those two years.

Question 19

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Accepted Answer

Since 1950, the energy efficiency of the U.S. economy has more than doubled, reflecting improvements in technology, changes in the mix of industries, and increased focus on energy conservation.

Question 20

Power plants with the lowest operating costs tend to

Accepted Answer

Power plants with the highest fixed costs in terms of construction, such as nuclear and hydroelectric plants, often have lower operating costs once they are up and running. This is because their primary fuel sources (nuclear fuel, water flow) are relatively inexpensive compared to the fuels required for other types of power plants, like coal or natural gas.

Quiz 19: Natural Resource and Energy Economics

Other things equal, in the absence of Environmental Protection Agency pollution credits, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

ACME Corporation used to produce $50 worth of goods (in 2000 dollars) per million BTUs used. Now it produces $60 worth of goods (in 2000 dollars) per million BTUs. Based on this, we can conclude

Which of the following is considered a renewable natural resource?

As of 2017, approximately 62 percent of U.S. electricity is generated from

In the United States in 2017, one million BTUs of energy yielded _______ worth of goods and services (in 2009 dollars) .

Which of the following is considered a renewable natural resource?

Other things equal, ethanol made from corn becomes economically viable (same or lower cost than using oil) when oil prices reach _____ or more per barrel.

Which of the following is considered a nonrenewable natural resource?

Alternative fuels become more economically viable as

To achieve economic efficiency in energy use, an economy

Productive inputs capable of replacing themselves if harvested at moderate rates are known as

Which of the following is considered a nonrenewable natural resource?

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach _____ or more per barrel.

Productive inputs that are actually or virtually fixed in supply are known as

In 2017, the primary sources of U.S. electricity generation, in order from largest to smallest, were

Because of Environmental Protection Agency pollution credits to biodiesel producers, biodiesel becomes economically viable (as or less costly than using oil) when oil prices reach _____ or more per barrel.

According to the concept of present value, a $50 barrel of oil today is worth

Since 1950, the energy efficiency of the U.S. economy in terms of producing goods and services has

Power plants with the lowest operating costs tend to