Upgrade to remove ads
Econ 145 Quizzes
Terms in this set (62)
T/F: A market in which the prices understate the value of the full range of services provided by environmental assets is considered missing.
T/F: If a price does not exist for an environmental asset (such as the existence of sea turtles), this is called a missing market.
Market failures by definition result in a Pareto inefficient allocation. What is a Pareto inefficient allocation?
An allocation that can be reallocated to make someone better off without making anyone worse off.
T/F: The difference between a pecuniary and a technological externality is that technological externalities are represented as shifts in the utility or production function, whereas pecuniary externalities only shift the market price (movements along the curve).
The social cost is defined as:
The cost faced by all of society including the private consumer/producer.
T/F: If the marginal social cost exceeds the marginal private cost, this will result in overproduction (Qoptimum < Qmarket).
Which of the following is NOT an example of "Internalizing the Externality"?
The government promises to fine anyone that kills a whale in violation of the
international whaling laws
T/F: Because long-line fishing kills hundreds of sea-turtles as bycatch (negative externality), the
optimal outcome will occur when there is no long-line fishing.
Which of the following is NOT a problem with command-and control policies?
Although it eliminates the deadweight loss, the government gets to keep all of the
generated surplus. This leaves consumers and producers no better off.
Which of the following is an example of a Pigouvian tax?
Fishing vessels are taxed $2000 per ton of swordfish caught.
The economics department has a weekly lunch seminar in which a plate of cookies are
provided. Are the cookies excludable?
Are the cookies rivalrous?
Therefore, the plate of cookies would be considered a:
T/F: Because one cannot control who consumes a non-excludable good, one cannot put a price on a non-excludable good.
The free-rider problem is at its worst for what type of good?
T/F: Congestion at the weight room in RIMAC would not be considered a Technological Externality because it is the result of too many people and therefore not related to technology.
In the long-run, fishermen would all be better off if they reduced the amount they caught each
year, but they do not reduce the catch because they have no incentive to do so. Why?
Because of the resource stock externality, they fail to take into account the damage that overfishing today has on future profits.
T/F: The Tragedy of the Commons occurs because the individual costs of exploiting the common resource are lower than the social cost.
T/F: Private firms under-provide public goods because the market price for any public good is zero, so they can't make a profit (or break even if the cost is positive).
Total (or global) benefits are computed by taking the individual benefits and:
T/F: A property right is a bundle of characteristics that conveys certain powers to the owner of that right.
______ property rights are granted by state, while ______ property rights are customary law.
De jure; de facto
The ______ means that the first party to use an unowned resource acquires claim to it.
Rule of first possession
What is the dominant method of establishing property rights?
Rule of first possession
Which type of property right is the most exclusive?
T/F: When a group owns common property, consumption is not rivalrous within the group.
Which of the following is NOT true for limited access?
Same as an open access
Which of the following is NOT true for an ITQ?
Is the same as a fishing cooperative
Which of the following characterizes the high seas?
High seas is defined beyond 200 nautical miles and open access
T/F: The 6 main characteristics of property rights are: universality, exclusivity, durability, transferability, divisibility, and security.
The invention of barbed wire most improved which characteristic of property rights for landowners?
Which characteristic of property rights is sometimes called "flexibility"?
Emissions trading, or cap-and-trade, relies on individuals/firms to be able to sell their right to emit pollution. The ability to buy and sell emission permits demonstrates which characteristic of property rights?
A landowner owns many acres of land. She decides she wants to sell off the land and thinks it'll be more profitable to split up her land into smaller lots and then sell these smaller lots. When she divides up her land into smaller lots, which characteristic of property rights is she exercising?
T/F: You live in an apartment that you rent. You have a usufruct right for your apartment.
Common property and open access differ most importantly in which of the following ways?
Common property has the right of exclusion, while open access does not
Which of the following is NOT true about the EEZ?
Coastal State has sovereignty
T/F: The coastal state determines the allowable catch of living resources in the EEZ
Which of the following countries has ratified the law of the sea?
Which definition best describes Hot Pursuit in the context of Econ 145?
A coastal state can chase onto the high seas a foreign ship that has transgressed its laws within its EEZ
Which of the following is NOT a Tuna RFMO?
ICCIT: International Commission for the Conservation of Indian Ocean tuna
T/F: The UN fish stocks agreement in 1995 established regional and sub-regional fisheries management organizations
T/F: Catadromous fish stocks spend most of the biological cycle in the high seas but return to fresh water to spawn.
T/F: All states have the freedom to navigate through, fly over, fish upon and conduct scientific research in the high seas.
Which is a correct interpretation of Xt and F(Xt)?
Xt is the stock of fish at time t, while F(Xt) is the one percent change (or growth) in the stock of the fish.
T/F: For the fish stock to be unchanged between two periods, the amount of fish caught must exactly equal the growth in the fish stock.
Which of the following provides the correct labels for X0 and K?
X0 is the minimum viable population while K is the maximum sustainable carrying capacity
Suppose lawmakers are concerned about the survival of a species, and pass a law that bans hunting of that species from now on. Provided the law is successfully enforced, we should:
Expect the population to continue shrinking if X=A currently, but grow if X=B.
T/F: A population growth function (F(X)) that is concave throughout is referred to as 'depensatory'.
Which statement is true about effort levels 1 and 2?
Effort level 1 is the higher level of effort, and has a lower steady-state yield.
In the presence of a fixed-harvest quota, which of the following statements is true about X' and X''?
X' is an unstable equilibrium, while X'' is a stable equilibrium.
Which is a special property of effort level B?
Effort level B achieves the max sustainable yield in steady state.
Which statement is true about effort levels A and C?
Effort level A maximizes industry-made profit, but effort level C results under open acces
T/F: The equilibrium under open access is economically efficient (i.e., maximizes total surplus)
The logistic population growth function exhibits what type of growth?
Which of the following conditions must be true in a steady state?
For steady states where the stable level of the resource stock is ______ than XMSY, the same steady-state yield can be achieved using a lower level effort.
Which of the following is true? (You may assume we are talking about strictly "inferior" steady states, where both X>0 and Y>0)
Higher effort necessarily decreases the steady state yield
Which of the following is true under open access? (Fisher)
If an individual fisher catches y pounds, this increases the total catch (across all fishers) by less than y pounds
Which of the following is true under open access? (MR)
Private marginal revenue (from the perspective of an individual fisher) is greater than social marginal revenue (from the perspective of all fishers)
T/F: If the fishery were owned by just a single owner (as opposed to open access), the equilibrium effort would be the economically efficient level (E*).
Assume a backward-bending supply curve and a regular demand curve.
Statement A: An intersection in the upward-sloping portion of the supply curve is a stable equilibrium.
Statement B: An intersection in the downward-sloping portion of the supply curve is a stable equilibrium.
Statement A is true while statement B is not necessarily true or false.
THIS SET IS OFTEN IN FOLDERS WITH...
Econ 145 Midterm Review
Econ 145 Quizzes
ECON 145- final :)
YOU MIGHT ALSO LIKE...
Econ Quiz 5
chapter 4 micro econ
OTHER SETS BY THIS CREATOR
ECON 145 Final
Econ 145 Midterm
HIEU 127 Midterm