ECON 310 Chapter 1 Study Quiz Answers

______1. Resources provided by nature that can be divided into increasingly smaller units are referred to as:

a. natural resources.

b. exhaustible resources.

c. renewable resources.

d. both a and c.

e. all of the above.

Answer: e

_____2. The difference between natural resources and environmental resources is that

a. it is not possible to utilize natural resources without the provision of other inputs such as capital.

b. natural resources are divisible while environmental resources are not.

c. analysis of the correct rate of use for natural resources involves an examination of changes in quality rather than quantity.

d. environmental resources are a subset of natural resources.

Answer: b

______3. Market failure results when

a. monopoly power develops within a perfectly competitive market.

b. there is a divergence between costs and benefits associated with production and consumption at equilibrium.

c. irreversible environmental consequences result from the perfectly competitive equilibrium quantity.

d. both a and b.

e. all of the above.

Answer: e

______4. Economic and Social System obtains ________ from the natural environment and deposits __________ back into the natural environment.

a. wastes; raw materials.

b. raw materials; wastes.

c. raw materials; physical environment.

d. aesthetic benefits; resource depletion.

e. both b and d.

Answer: e

______5. Deciding how much corn to plant can be considered

a. a static decision.

b. a dynamic decision if the farmer is using a crop rotation system to preserve soil quality.

c. a market based decision.

d. a government influenced decision.

e. all of the above.

Answer: e

______6. The study of resource use should be interdisciplinary because:

a. biological considerations are important in determining the costs and benefits associated with resource use.

b. governments within many different countries are involved in resource allocation decisions.

c. decisions made about use will impact not only current costs and benefits but also future costs and benefits.

d. none of the above.

Answer: a