Midterm Review Flashcards
(121 cards)
What percentage of Alaskans income comes from wages and salaries – from working?
65%
Is the Permanent Fund Dividend an “income from investments” or is it a transfer payment?
It is a transfer payment
Has Alaska’s per capita income been going up, down, or staying the same over the last few years?
Relative to other states, Alaska’s per capita income has been going down since 2010 as the rest of the country came out of a recession as Alaska entered one.
Alaska has a more equal distribution of income than almost any other state. True or False?
True
Subsistence – hunting, fishing, and food gathered from the land – is not counted as income in most official government statistics. It was not part of the statistics used for homework article. If you were to put a monetary value on the subsistence income of Alaska residents, what type of income would count it as?
Work income
A graduate of UAA invents an economic use for alders (the tree). She spends $100 million to construct an alder-processing plant in mid-town Anchorage and immediately hires a 10,000 new workers. What are the two most likely short-term effects (first year or so)?
- Alaska’s unemployment rate would go down
- Alaska wage rates would go up
What are the three most likely long-term effects (changes over a period of several years) of the new alder-processing facility described in the last question?
- More people would move to Alaska
- Alaska’s unemployment rate would stay about the same
- Alaska wage rates would stay about the same
How does the “Jones Act” affect the cost of transportation to Alaska?
Raises it for water-borne transportation
Over the past 50 years, the cost of transporting goods to and from Alaska has dropped. What private sector activity has this made more difficult in Alaska?
Private sector production of goods for the Alaska market
The Jones Act allows the transport of oil between Anchorage and the U.S. West Coast in a tanker built in a foreign country.
False
Over the last few years, the Alaska economy has been in a recession. The remainder of the U.S. economy has been strong. This has prompted:
Net outmigration
Suppose Alaska passes a law that provides that oil producers are required to process oil into gasoline into Alaska. Crude oil exports are outlaws. Which of the following are true:
- Employment in Alaska would increase
- Oil producers would make less profit.
What is an enclave economy?
Economic activity located within a geographic region but which is not integrated with the economy of the region.
Alaska companies which produce products for export are likely to receive:
The world price minus the cost of transportation.
A company which imports material from outside Alaska pays:
The world price plus transportation cost.
True or False: It would be good for Alaska fishermen if the state required processors to sometimes make a product – like fish sticks – from the raw fish before exporting it.
False
Imagine that you lived in a remote Alaskan village. Which of the following economic activities have the most potential for success? More than one answer is possible. Note, in the question, “Outside market” means a market outside Alaska.
- Private sector production of significant natural resources, such as mining, timber, or oil, for Outside markets.
- Private sector production of services for the local market.
Where is Alaska’s North Slope?
North of the Brooks Range
What is the permafrost situation near Juneau?
Free from permafrost.
What is the area called outside of Alaska’s regional local government?
The “Unorganized Borough”
Located in the Aleutian Islands, 800 air miles from Anchorage. This city is the largest U.S. Fishing port and the center of the Bering Sea fishing Industry. It was also the Location of a large Navy based during WWII, which was bombed by the Japanese.
Dutch Harbor/Unalaska
What is the farthest north one may drive in Alaska (at least with a commercial vehicle)?
Prudhoe Bay
What community is the southern terminus of the Trans Alaska Pipeline?
Valdez
In the song “North to Alaska,” (from the movie of the same name) George tells Big Sam that “I’d build for my Jenny a honeymoon home; below that old white mountain, just a little south-east of Nome.” What’s wrong with these lyrics?
There is nothing southeast of Nome but water – the ocean.
