Final Flashcards
(131 cards)
1
Q
What are the eras of mining history?
A
Historic Era, Low Era, Modern Era
2
Q
Professor Loeffler divided Alaska’s mining history into 3 era’s. Which of the events below triggered the beginning of the era that we are in today? (More than one answer may be appropriate).
A
President Nixon deregulating gold prices
The permitting of the Red Dog and Greens Creek Mines
The federal government conveying significant amounts of land to Native Corporations to implement ANCSA
3
Q
What mineral is leased like oil and gas?
A
Coal
4
Q
What is a hard rock mineral deposit?
A
A mine that requires drilling and blasting to separate ore from its foundation.
5
Q
Why is the mineral industry a lottery industry?
A
For exploration, because a single win must pay for many losses.
6
Q
How does a mineral price increase affect a mine’s profits?
A
Profit will increase more than mineral prices increase.
7
Q
What is the state’s royalty rate on locatable minerals (i.e., not coal)? Where does it apply?
A
3% net profits and applies only to state land.
8
Q
What is Alaska’s mining license tax and where does it apply?
A
7% of net profit, applies to all land.
9
Q
The Red Dog Mine began production in 1989. When did Teck recover its capital investment?
A
2007
10
Q
How much money has NANA received from the Red Dog Mine since startup?
A
$1 billion
11
Q
According to the article “Mining and Sustainable Communities,” which of the statements below are true about the Red Dog Mine’s effects on villages in the region? (More than one answer may be correct.)
A
Red Dog employs a significant number of NANA shareholders, including many from the region
Red Dog Mine has increased the median income in the region
Red Dog Mine is associated with an increase in K-12 graduation rates in the Northwest Arctic Borough School District?
Red Dog Mine helped create the Northwest Arctic Borough.
12
Q
How does the revenue that the State of Alaska receives from the mining industry compare to the cost to promote and regulate the industry
A
State revenue is significantly greater than the state’s cost.
13
Q
Which of the following statements is accurate concerning the contribution of the mining industry to Alaska’s government revenues as compared to the oil industry’s contribution?
A
The state government’s revenue from the mining industry is much less than a quarter as large its revenue from the oil industry.
14
Q
Roughly how many placer mines operated in Alaska in 2013?
A
295
15
Q
Mine Locations from Norther to South
A
Red Dog Fort Knox Pogo Gold Usibelli Coal Kensington Gold Greens Creek Silver/Lead
16
Q
Greens Creek Silver/Lead Mine
A
Southern Most
17
Q
What two industries make up the Alaska’s “seafood industry”?
A
Fishing and fish processing
18
Q
What is “ex-vessel value?”
A
The money paid to fishermen when they sell their fish to processors
19
Q
There are two components of first wholesale value of Alaska seafood production
A
ex-vessel value, and seafood processing
20
Q
What are Alaska’s five major “fisheries”?
A
Salmon, Groundfish, Crab, Halibut, and Herring
21
Q
What salmon species accounts for the greatest share of the ex-vessel value of Alaska salmon
harvests?
A
Sockeye Salmon
22
Q
Which of the major Alaska fisheries accounts for most of the volume (weight) of fish harvested in Alaska?
A
Groundfish
23
Q
What two of the five major Alaska fisheries account for most of the first wholesale value produced by the Alaska seafood industry?
A
Groundfish and salmon
24
Q
What caused a dramatic increase in U.S. groundfish harvests in Alaska waters in the 1980s?
A
U.S. fleets replaced foreign fleets harvesting groundfish
25
Under the “limited entry” system, who is allowed to fish for salmon?
Only people with limited
| entry permits
26
What does IFQ stand for
Individual Fishing Quota
27
•Under IFQ management, how much halibut is a fisherman allowed to catch during a season?
An amount equal to the fisherman's individual quota, which differs for different fishermen
28
When the IFQ program began, what did halibut fishermen pay for their original IFQ shares?
Nothing, they received them for free
29
What are three arguments in favor of IFQ management?
Lower costs, higher value, and safer
30
What is an argument against IFQ management?
Unfair allocation, Fishing no longer open to anyone who wants to fish, Hard for a young person to get into the fishery, Reduces the
number of fishing jobs
31
What species of fish harvested in Alaska accounts for the largest share of U.S. fish catches by
volume?
Alaska pollock
32
What is “surimi”
Fish paste
33
What factor has contributed to strong harvests of pink and chum salmon in Alaska in recent
years?
(Good returns to salmon hatcheries
34
What is the best description of Alaska fish prices?
Very unstable, like prices of other natural
| resources such as oil, minerals and timber
35
What are the two reasons for which Alaska fishermen opposed allowing salmon farming in
Alaska?
They were worried about effects on wild fishery; they were worried about competition
from farmed salmon
36
• Which is the best description of the condition of Alaska’s fish resources?
Most fishery
| resources are healthy, with a few important exceptions
37
What was the trend in Alaska salmon prices during the 1990s?
Downwards
38
In fisheries science, what is a "regime shift"?
Periodic long-term changes in ocean conditions
39
What was the trend in Alaska salmon prices during the 2000s?
Upwards
40
Name two SUPPLY factors that affect Alaska fish prices.
Supply from Alaska; supply from
| Alaska's competitors (farmed and wild)
41
Name two DEMAND factors that affect Alaska fish prices
Consumer Incomes, consumer
tastes, exchange rates, prices of other fish and other foods, distribution costs, trade barriers,
marketing, market power of buyers
42
What was the most important factor affecting Alaska salmon prices during the 1990s?
Competition from farmed salmon
43
What are three reasons for which the seafood industry is important to Alaska?
A major
source of jobs and income. The most important source of income in many coastal communities.
The only private sector source of cash income in many rural areas. An important part of the tax
base in rural Alaska. An important contributor to rural infrastructure and utilities. A very
important part of the culture and way of life of many Alaskans
44
Under what kind of system are most Alaska fishermen paid?
A “share” system
45
Which is higher: annual average employment in fishing, or the total number of people who
participate in fishing?
The total number of people who participate in fishing
46
About what percentage of the workers in Alaska's seafood processing industry are nonresidents?
70%
47
• What is the most important tax paid by the Alaska seafood industry? How is it calculated?
Fisheries business tax: A tax paid by processors based on a percentage of the ex-vessel value
of the fish
48
Which two major Alaska fisheries are managed by the State of Alaska?
Salmon and herring
49
What organization establishes fishery management policy for the federal government in Alaska
waters?
The North Pacific Fishery Management Council
50
Why is there a potential for “conflict of interest” in the U.S. fishery management council
system?
Because the council members are deciding about issues which affect their own
businesses
51
What organization establishes fisheries management policies for the State of Alaska?
The
| Board of Fisheries
52
Name one of the Alaska CDQ groups.
Any of: Aleutian Pribilof Island Community
Development Association, Bristol Bay Economic Development Corporation, Central Bering Sea
Fishermen’s Association, Coastal Villages Region Fund, Norton Sound Economic Development
Corporation, Yukon Delta Fisheries Development Association
53
How much does the commercial fishing industry pay relative to the amount it costs the state to
manage and promote the industry?
A little less than the cost to manage and promote the
| industry
54
If Alaska were an independent country, it would rank _____ in the world in the volume of fish harvests.
10th
55
Why is it difficult to generalize about the Alaska seafood industry?
Because there are many different kinds of fish and fish products
56
Which of the following is not one of the five major fisheries?
Anchoveta
57
Which two of the following are the main capital costs for participation in a salmon fishery (choose two)?
- Limited Entry Permit
| - Vessel
58
True or False: an individual with multiple salmon limited entry permits may fish all of these permits each year.
False
59
What transformed the world salmon industry in the 1980s and 1990s?
Salmon Farming
60
What does "IFQ" stand for?
Individual Fishing Quota
61
What is the term for the management change for Alaska's Bering Sea crab fisheries in 2006, in which an IFQ system was implemented?
Rationalization
62
True or False: U.S. fish harvests in Alaska waters increased dramatically after 1976 because foreign fleets replaced U.S. fleets harvesting pollock and other Groundfish in the U.S. 200-mile exclusive economic zone (EEZ).
False
63
What is a "regime shift"?
Changes in ocean conditions
64
What has been a major contributor to salmon harvests since the 1980s?
Alaska salmon hatchery program
65
Which two strategies can be used to reduce resource risk (choose two)?
Diversification across species
Conservation
Diversification across geographic areas
66
Does consumer income affect supply or demand?
Demand
67
Answer the question below about what the state receives from the commercial fishing industry relative to what it spends promoting and regulating the industry.
It spends more than it receives in revenue from the commercial fishing industry.
68
What percent of skippers and crew in the Commercial fishing industry are Alaskans
56%
69
What percent of the ex-vessel value went to Alaska residents in 2016?
38%
70
The oil industry is responsible for what percentage of jobs in the Alaska economy?
1/3
71
The commercial fishing industry is responsible for what percentage of jobs in the Alaska economy?
Much fewer than 25%
72
When Dr. Goldsmith writes about "new money," in the language of export-base economics, he is writing about...
Basic revenue
73
Is air cargo a basic or support industry?
Basic
74
Alaska's oil production has fallen by 75% since the high in 1989. Why did Alaska's economy continue to boom through 2014?
Because oil prices rose -- at one point up to $140/barrel.
75
Which of the following statements are true?
(there may be more than one correct answer)
-The economy is "based on" basic industries because they bring money into Alaska
Support industries "support" the economy by bringing money into Alaska
-Basic industries are those which provide Alaskans with their basic needs, such as as stores and restaurants
-When income brought into Alaska by basic industries gets re-spent in Alaska it creates income in support industries.
-Support industries depend on the spending of Alaska businesses and residents
-The economy is "based on" basic industries because they bring money into Alaska
Support industries "support" the economy by bringing money into Alaska
-When income brought into Alaska by basic industries gets re-spent in Alaska it creates income in support industries.
-Support industries depend on the spending of Alaska businesses and residents
76
Which of the following statements are correct?
(Note: More than one statement may be correct)
Answers:
- When Alaska’s population grows, the demand for state services grows
- Alaska residents pay significant taxes to local government
- Alaska residents pay significant taxes to state government
- Most Alaska economic development results in increases in taxes sufficient to cover the additional demand created for state services
- When Alaska’s population grows, the demand for state services grows
- Alaska residents pay significant taxes to local government
77
What is the Alaska Disconnect?
It refers to the effect that, due to a lack of broad-based taxes, growth in an industry -- other than oil (and possibly mining) -- does not pay for the increased cost to government from the industry or its workers.
78
Oil and to a lesser extent mining do not create the Alaska Disconnect. Why?
Because the revenues from the industry are large enough to pay for the share of general state government spending attributable to the jobs and population they support.
79
What has Alaska done that is sometimes given as an example of how an oil-rich country or region can mitigate the resource curse?
Saved a significant share of oil revenues in a Permanent Fund, and paid dividends to citizens from this fund
80
What is "the resource curse"?
The paradox that countries that have lots of resources tend to grow more slowly than countries with few resources.
81
100 MMBF means:
100 million board feet
82
You are the CEO of Clearcut Logging Company. You know that processing costs are lower in Asia, which is your export market, than in Alaska. But the federal government requires some processing in the U.S. before you can export. What will you do:
Export cants to Asia.
83
You are the President and CEO of Clear-cut Logging Company. You are going to bid on a timber sale from the Tanana Valley State Forest near Fairbanks, and you are going to try to export the wood and sell it to a mythical Asian Country. The price, delivered to Asia, for your product is $150/MMBF. You know it will cost you $25/MMBF for the barge costs from Alaska to Asia; $25/MMBF to transport the wood from Fairbanks to the coastal port; $25/MMB to contract with a contract logging company to log the tract; and $25/MMBF to hire a road builder to develop roads the tract. What is the maximum price you can bid for the timber sale?
$50/MMBF
84
Where is the most valuable timber in Alaska located (be careful and pick the best answer)?
On federal land within the Tongass Forest or Native Corporation or state land nearby.
85
With respect to the forest industry, what is the best meaning of sustained yield?
A harvest level that could be offered in perpetuity.
86
"A resource in the ground does not earn interest, but the profit from such a resource may be invested with a rate of return." This sentence provides a reason to do one of the following (pick the best answer).
The reason for a private timber-land owner to abandon sustained yield.
87
Why did the federal government offer a 50-year contract to KPC in the 1950s. (Pick the best reason).
To give certainty for investors in KPC that the timber supply would be there long enough to pay back the loans.
88
Which of the following were reasons for KPC to close its mill in Ketchikan? (More than one answer is possible).
- The high cost to upgrade the mill to meet modern pollution standards.
- Cancelling/failure to extend the long-term timber sale contract to KPC.
89
Three years after KPC closed, timber harvest levels in Southeast Alaska
Rose
90
Native timber harvest is much lower now than in the mid-1990s because:
The Corporations have harvested most of their timber inventory.
91
If you were a small value-added timber processor in southeast Alaska, and as major corporation announced that a new pulp mill would be built in a nearby town you would be:
Pleased because there would be a market for lower-quality timber.
92
While not nearly as large as oil, forestry is still a major contributor to basic industries in Alaska (in terms of export sales or employment).
False
93
When we compare forestry-related employment on Native versus Forest Service Land, we find:
Employment for forestry-related activities on federal land is larger because of the federal requirement for processing before export.
94
Which three of the following statements are true?
Timber harvest from the Tongass National Forest is a basic industry.
Timber harvest from the Tongass National Forest is a support industry.
Timber harvest from state land on the Tanana Valley State Forest near Fairbanks is a basic industry.
Timber harvest from state land on the Tanana Valley State Forest near Fairbanks is a support industry.
Timber harvest on Native Land in southeast Alaska is a basic industry
Timber harvest on Native Land in southeast Alaska is a support industry
- Timber harvest from the Tongass National Forest is a basic industry.
- Timber harvest from state land on the Tanana Valley State Forest near Fairbanks is a support industry.
- Timber harvest on Native Land in southeast Alaska is a basic industry
95
From the mid-1990s to 2010, timber harvest in southeast Alaska:
Declined by 80%
96
Most visitors to Alaska come by:
Cruise ship
97
What is the ratio of people who come on package tours to the people who come independently (not on a tour):
2:1
98
The region in Alaska most visited by tourists is:
Southeast Alaska
99
When asked which activities tourists participated in, the most cited activity was:
Shopping
100
Which group spends the most in Alaska?
Visitors who arrive by air
101
Which of the following is true (only one):
- While Tourism is not as large as the oil industry, it is still an important basic industry for Alaska.
- Tourism is an important support industry (tourists spend money primarily on food and lodging which are typical support businesses).
- Tourism is a relatively small basic industry, as compared to other basic industries in Alaska, though it is important for the communities where it exists.
- Tourism does not contribute to the Alaska economy.
While Tourism is not as large as the oil industry, it is still an important basic industry for Alaska.
102
Revenue to the state government from tourism:
Is approximately equal for the cost for the state to manage and support the industry.
103
True or False: Limiting the number of coal power plants in the U.S. would be an example of adaption to climate change (rather than mitigation).
False
104
True or False: A carbon tax would be one method of climate change mitigation (as opposed to adaption).
True
105
Which statement best describes the distribution of climate change costs in Alaska?
As a generalization, urban Alaskans may see benefits, but rural Alaskans, especially those in western and northern Alaska will experience the costs.
106
Which statement is most accurate about the percentage of Alaskans that will benefit from climate change?
Most Alaskans will experience a net economic benefit from climate change.
107
With respect to carbon use per capita, how does Alaska compare with the rest of the U.S.?
On a per-capita basis, Alaska uses about three times as much as the rest of the U.S.
108
What industries are likely to experience the greatest cost increase due to climate change?
Oil and gas, and transportation
109
What is the rate at which Alaska's temperature has been warming since the middle of the 20th century, compared with the rest of the country?
Alaska has been warming at twice the rate as the rest of the U.S.
110
What is the largest cost that Alaska will see due to climate change?
Increased cost to maintain and repair infrastructure due to thawing permafrost and erosion.
111
Which of the following represents the benefits of climate change? (More than one answer is possible.)
- The tourism industry may experience a longer tourism season.
- Farmers may experience a longer growing season.
- Alaskans may experience reduced cost for heating their homes.
- The Red Dog Mine and western Alaska villages may experience longer ice-free shipping seasons and therefore reduced transportation costs.
112
What answer best describes the U.S. response to climate change?
The U.S. Congress can barely even acknowledge the problem and has done nothing in response to climate change, but some state and local governments are actively working on the issue.
113
True or False: The consumer price index can be used to compare price levels between two different places.
False
114
What is the term for the sample of items for which prices are collected in a cost-of-living survey?
Market Basket
115
If the Anchorage CPI was 189.5 in 2008, by what percentage did prices increase in Anchorage from the base period of 1982-84 to 2008? (Note, the CPI for the base period is by definition 100.)
89.5%
116
What cost grew most rapidly in Anchorage in 2017?
Energy
117
What does the consumer price index measure?
Inflation
118
Please indicate which three state agencies have the largest budgets (including any formulas which occur through those departments).
- Department of Health and Social Services
- University of Alaska
- Department of Education
119
In what fiscal was November 22, 2008?
FY 2009
120
Which of the following appropriations should be included in the Capital Budget rather than the Operating Budget?
- Funding to fix Anchorage's Port.
| - Funding for a new community center in Tok.
121
For the years before FY 2018, how much of the state’s unrestricted general fund revenue has come from oil?
90%
122
SB 26 provided a mechanism to fund the state operating and capital budgets from the Permanent Fund Earnings Reserve. How will the mechanism provide revenues for this year’s budget, assuming the legislature uses it:
It will withdraw 5.25% of the 5-year average market value of the Permanent Fund from the Earnings Reserve to fund the budget.
123
What is the statutory formula for calculation of the Permanent Fund Dividend?
One-half of the five-year average of the realized earnings of the Permanent Fund?
124
Which of the following are restricted income sources? More than one answer may be correct.
- The portion of oil royalties that are deposited into the Permanent Fund
- Permanent Fund Earnings
- Federal grant funds
- Fisheries taxes that the statute expects to be rebated to local governments
125
What answer describes a difference between how the Permanent Fund and the CBRF may be used?
For the CBRF, both the principal and earnings may be spent. For the Permanent Fund, only the realized earnings may be spent.
126
What are UGF funds in Alaska's budget process?
Funds that may be spent by the legislature for any legal purpose.
127
Which answer best describes DGF funds in Alaska's budget process?
Funds collected for a specific purpose. The legislature is expected to appropriate them for that purpose.
128
What is the POMV percentage that the legislature may use from the Permanent Fund Earnings Reserve this coming year?
5.25%
129
Between 2014 and 2018, what percentage of the CBRF has been used, and what was it used for?
Most of it was used, and it was used to balance the budget.
130
If the value of the Permanent Fund over the last five years was: $58 billion, $59 billion, $60 billion, $61 billion, and $62 billion (these are not exactly accurate, but are made easier for calculation), how much of the earnings reserve would the legislature be allowed to use this year under SB 26?
$3.15 billion
131
Governor Dunleavy wishes to fund the Permanent Fund Dividend using the formula that exists in statute. What must he do to accomplish this? (Choose the best answer.)
- Raise taxes on the oil companies.
- Levy a broad-base tax on Alaska's citizens
- Cut a huge amount out of the budget.
- Use money from savings
