ECON 132 Quiz: Practice quiz for midterm #1

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Published on 26 Mar 2019
School
UCSD
Department
Economics
Course
ECON 132
Name_________________________
StudentNumber_______________________
ECON132:QUIZ2(ANSWERSINBOLD)
1.Amonopolistsupplierofanexhaustibleresourcewillsell_FEWER(orsimilarword)___unitsofthe
resourceinearlytimeperiodsthansuppliersinacompetitivemarket.
2.Ifthemagnitudeofthecoefficientonthesquareterminaquadratic cost function increases, the
ownerofaprofitmaximizingcoalminewillextract quantitiesofcoalthataremoreequalacrosstime
periodsthanbeforetheincrease.
(A)TRUE(B)FALSE
3. If the stock of oil increases at each existing oil well due toanewtechnologicaladvancesuchas
fracking,thepriceofproductsmadefromoilwill:
(A)fall (B)double (C)remainconstant (D)rise
4.HubbertpredictedthatoilproductionintheUnitedStateswouldhitapeakin1952.
(A)TRUE (B)FALSE
5.Thefirstauthorofthearticleoftoday’sreading“TheFutureofOilSupply”is:
(A)BobFilner (B)M.KingHubbert (C)RichardMiller (D)WilliamNordhaus
6.OPECisa:
(A)Cartel (B)ConsumerOrientedNGO (C)CoalitionofSunniOilProducers (D)Duopoly
7.Drillingforoiloffshoreismoreexpensiveperbarrelthanconventionalland‐basedoilwellsinTexas.
(A)TRUE(B)FALSE
8.Countrieswith_LARGE(orsimilarword)___oilreservesrelativetodomesticproductionaremore
likelytojoinanefforttoreduceworldoilsupplyinordertodriveupoilpricesup.
9.TheHubbertPeakoilmodelisbasedona_LOGISTIC(orNormal)___growthfunction.
10.OilpriceswerepredictedbyHotellingtoriseovertimeatanexponentialrateandthispredictionis
easilyverifiedbylookingatthepricepathofworldoilpricesstartinginthe1920’s.
(A)TRUE (B)FALSE
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Document Summary

If the magnitude of the coefficient on the square term in a quadratic cost function increases, the owner of a profit maximizing coal mine will extract quantities of coal that are more equal across time periods than before the increase. (a) true (b) false. If the stock of oil increases at each existing oil well due to a new technological advance such as fracking, the price of products made from oil will: (a) fall (b) double (c) remain constant (d) rise.