Oceans, Forests & Natural Resources: Checkpoint 1

Quick checkpoint - five questions on fisheries, catch shares, mining, critical minerals and Hotelling's rule.

Quick checkpoint - five questions on fisheries, catch shares, mining, critical minerals and Hotelling’s rule.

Question 1 of 5 Why does open access lead to overfishing?

Fish reproduce too quickly Each boat has an incentive to catch as much as possible because fish left behind may be caught by others Governments require it Fish are too expensive

The cost of depleting the stock is shared, while the catch belongs to whoever takes it.

Question 2 of 5 What do catch shares do?

Ban fishing entirely Set a total catch and give fishers secure shares of it Allow unlimited fishing Privatise the ocean

They end the race to fish and give holders a stake in conservation.

Question 3 of 5 What drives the commodity cycle in mining?

Supply responds slowly because new mines take years to open Minerals never change price Mines can open overnight Demand is always constant

Prices soar before new supply arrives, then fall when it does.

Question 4 of 5 Which country dominates the refining of many critical minerals?

Brazil China Canada Egypt

China dominates processing of rare earths, lithium, cobalt and graphite.

Question 5 of 5 According to Hotelling's rule, the net value of an exhaustible resource tends to rise at what rate?

Zero The rate of interest The rate of population growth Twice the inflation rate

Owners compare leaving the resource in the ground with extracting and investing the proceeds.

← Back to Sand: The Resource We Forgot Next lesson → India's Groundwater Crisis

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