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15 Cards in this Set
- Front
- Back
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All other things equal, if the price of oil goes down which of the following should result? |
The amount of oil reserves should go down |
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The number of years of reserves for different types of fuel is |
About 3 years for oil and 400 years for coal and 8-9 years for natural gas |
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According to the economic theory of the mine, an owner will choose to sell or wait based on what? |
...? |
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An "Economic Rent" is? |
Any return to a factor of production in excess of the minimum required to attract it to a particular activity |
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The largest consumers of coal today are? |
Electric utilities |
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Why is coal so important to the U.S. energy market? |
-The U.S. has an abundance of coal -Coal is the cheapest form of energy to generate large quantities of stream -Coal resources are widely distributed across the U.S -All the above |
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During most of its history, oil has been characterized by |
......? |
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Oil is a fugitive resource because |
Oil can flow underground and one well can capture oil under someone else's field |
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What event altered the nuclear power industry in the U.S.? |
Three Mile Island accident in Pennsylvania |
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Why did the costs of building nuclear power plants increase dramatically? |
The safety measures changed several times |
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Why may the rate of extraction of an exhaustible natural resource produced by profit maximizing firms in a competitive market differ from the socially optimal rate of extraction? |
-The private firm's discount rate is different from the social planner -Pollution is not accounted for by the private firms but they are taken into account by the social planner -Habitat conservation and diversity of animal species are not accounted for by the private firms but are by social planner -All of the above |
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Adherents to Hubbert's "peak oil" theories have continually had to revise their projections upward for the year that global supplies of petroleum would peak and begin to decline. What is NOT a reason for the phenomenon? |
-As the price pf oil goes up, the amount of reserves goes up as well -As the price of oil goes up, the market "rations it" by consuming less of it -As the price increases, it would increase incentives to explore and find more oil -None of the above- they are all reasons for this phenomenon |
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What characteristics does electricity have that makes it difficult or unique for economic analysis? |
Electricity cannot be stored and must be produced at the same time it is needed |
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In Illinois, what fules do we use to generate our electricity? |
....? |
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According to the supplementary electricity chapter, how are Investor-Owned Utilities (IOU) regulated today? |
-at the federal level, they are regulated by FERC -at the state level, they are regulated by the state Public Utility Commission -Both a and b |
