Question 1

A state that has a large pool of oil embedded in porous rock deep below its surface is

Accepted Answer

A) North Dakota. 
B) Florida. 
C) Delaware. 
D) Kansas. 
A) North Dakota. 
B) Florida. 
C) Delaware. 
D) Kansas. A

Question 2

The Iran-Iraq War of the 1980s generally contributed to

Accepted Answer

A) oil conservation efforts in the west. 
B) high oil and gasoline prices in the west. 
C) a rapid expansion of alternative fuels exploration in the west. 
D) dramatically falling world oil prices. 
A) oil conservation efforts in the west. 
B) high oil and gasoline prices in the west. 
C) a rapid expansion of alternative fuels exploration in the west. 
D) dramatically falling world oil prices. D

Question 3

Figure 42.2
-Under perfect competition the individual firm's economic profit is

Accepted Answer

A) zero. 
B) the smaller of the dashed line boxes. 
C) the larger of the dashed line boxes. 
D) between the size of the two dashed line boxes. 
A) zero. 
B) the smaller of the dashed line boxes. 
C) the larger of the dashed line boxes. 
D) between the size of the two dashed line boxes. A

Question 4

A main factor determining gasoline demand between 2002 and 2008 was

Accepted Answer

A) Americans' increased use of more fuel-efficient vehicles. 
B) shrinking demand in both India and China. 
C) Americans' increased use of less fuel efficient vehicles. 
D) a significant decrease in miles driven by the typical American. 
A) Americans' increased use of more fuel-efficient vehicles. 
B) shrinking demand in both India and China. 
C) Americans' increased use of less fuel efficient vehicles. 
D) a significant decrease in miles driven by the typical American.

Question 5

If gas prices today were $2.00 per gallon, in terms of history this would be

Accepted Answer

A) an all-time high in inflation-adjusted terms. 
B) an all-time high in nominal terms. 
C) not an all-time high but rather high in inflation-adjusted terms. 
D) about the long-inflation-adjustedterm historical average in inflation-adjusted terms. 
A) an all-time high in inflation-adjusted terms. 
B) an all-time high in nominal terms. 
C) not an all-time high but rather high in inflation-adjusted terms. 
D) about the long-inflation-adjustedterm historical average in inflation-adjusted terms.

Question 6

Figure 42.2
-Under the cartel the market quantity is

Accepted Answer

A) Q1. 
B) Q2. 
C) Qa. 
D) Qb. 
A) Q1. 
B) Q2. 
C) Qa. 
D) Qb.

Question 7

Figure 42.2
-Under the cartel the individual firm's economic profit is (assuming that it wants to cheat on its quot A.

Accepted Answer

A) zero. 
B) the smaller of the dashed line boxes. 
C) the larger of the dashed line boxes. 
D) between the size of the two dashed line boxes. 
A) zero. 
B) the smaller of the dashed line boxes. 
C) the larger of the dashed line boxes. 
D) between the size of the two dashed line boxes.

Question 8

Figure 42.2
-Under perfect competition the market quantity is

Accepted Answer

A) Q1. 
B) Q2. 
C) Qa. 
D) Qb. 
A) Q1. 
B) Q2. 
C) Qa. 
D) Qb.

Question 9

The stability of cartel prices is challenged because

Accepted Answer

A) cartels never exist. 
B) though they increase profits they are vulnerable to egalitarian interests. 
C) they never increase the profitability of their members. 
D) though they increase profits, they are vulnerable to those that seek to make more profit by breaking the agreements that generated them. 
A) cartels never exist. 
B) though they increase profits they are vulnerable to egalitarian interests. 
C) they never increase the profitability of their members. 
D) though they increase profits, they are vulnerable to those that seek to make more profit by breaking the agreements that generated them.

Question 10

During the 1999-2005 period gasoline prices

Accepted Answer

A) quintupled (went up 5 times)in price. 
B) tripled in price. 
C) remained relatively constant in inflation-adjusted terms. 
D) fell. 
A) quintupled (went up 5 times)in price. 
B) tripled in price. 
C) remained relatively constant in inflation-adjusted terms. 
D) fell.

Question 11

Which of the following are true about cartels?

Accepted Answer

A) They are stable because once they set a high price no one has a motive to increase production. 
B) Prices are high because perfect competition supplants monopoly. 
C) Prices are high because monopoly supplants perfect competition. 
D) High prices encourage reduced competitor production. 
A) They are stable because once they set a high price no one has a motive to increase production. 
B) Prices are high because perfect competition supplants monopoly. 
C) Prices are high because monopoly supplants perfect competition. 
D) High prices encourage reduced competitor production.

Question 12

An event driving gasoline prices higher from 2006 to 2008 was

Accepted Answer

A) growing energy use in China and India. 
B) Hurricanes Katrina and Rita. 
C) conflict in Nigeria. 
D) all of the answers are correct. 
A) growing energy use in China and India. 
B) Hurricanes Katrina and Rita. 
C) conflict in Nigeria. 
D) all of the answers are correct.

Question 13

A cartel is formed when

Accepted Answer

A) monopolists in different industries merge into one. 
B) perfect competitors in the same industry collude to form a monopoly. 
C) perfect competitors in different industries merge into one company. 
D) a company spins off a low profit unit. 
A) monopolists in different industries merge into one. 
B) perfect competitors in the same industry collude to form a monopoly. 
C) perfect competitors in different industries merge into one company. 
D) a company spins off a low profit unit.

Question 14

Which of the following nations is NOT part of OPEC?

Accepted Answer

A) Kuwait 
B) Iran 
C) Indonesia 
D) Mexico 
A) Kuwait 
B) Iran 
C) Indonesia 
D) Mexico

Question 15

If gas prices today were $4.00 per gallon, in terms of history this would be

Accepted Answer

A) an all-time high in inflation-adjusted terms, but not nominal terms. 
B) an all-time high in nominal terms and inflation-adjusted terms. 
C) not an all-time high, but rather high in inflation-adjusted terms. 
D) about the long-term historical average in inflation-adjusted terms. 
A) an all-time high in inflation-adjusted terms, but not nominal terms. 
B) an all-time high in nominal terms and inflation-adjusted terms. 
C) not an all-time high, but rather high in inflation-adjusted terms. 
D) about the long-term historical average in inflation-adjusted terms.

Question 16

If gas prices today were $2.50 per gallon, in terms of history this would be

Accepted Answer

A) an all-time high in inflation-adjusted terms. 
B) an all-time high in nominal terms. 
C) not an all-time high but rather high in inflation-adjusted terms. 
D) about the long-term historical average in inflation-adjusted terms. 
A) an all-time high in inflation-adjusted terms. 
B) an all-time high in nominal terms. 
C) not an all-time high but rather high in inflation-adjusted terms. 
D) about the long-term historical average in inflation-adjusted terms.

Question 17

Figure 42.2
-Under perfect competition the individual firm's quantity is

Accepted Answer

A) Q1. 
B) Q2. 
C) Qa. 
D) Qb. 
A) Q1. 
B) Q2. 
C) Qa. 
D) Qb.

Question 18

Non-inflation-adjusted ("nominal")gasoline prices reached their all-time highs in

Accepted Answer

A) 1982. 
B) 1991. 
C) 2001. 
D) 2008. 
A) 1982. 
B) 1991. 
C) 2001. 
D) 2008.

Question 19

The run up in gasoline prices during 1999 and 2000

Accepted Answer

A) put them much above their long-term inflation adjusted average. 
B) put them about the same as their long-term inflation-adjusted average. 
C) still had them much below their long-term inflation-adjusted average. 
D) put them well above their all-time high. 
A) put them much above their long-term inflation adjusted average. 
B) put them about the same as their long-term inflation-adjusted average. 
C) still had them much below their long-term inflation-adjusted average. 
D) put them well above their all-time high.

Question 20

Refining capacity in the United States is

Accepted Answer

A) rather evenly spread out across the country. 
B) concentrated in the industrial mid-west. 
C) concentrated on the coasts. 
D) located almost entirely in Alaska. 
A) rather evenly spread out across the country. 
B) concentrated in the industrial mid-west. 
C) concentrated on the coasts. 
D) located almost entirely in Alaska.

Exam 42: Energy Prices

A state that has a large pool of oil embedded in porous rock deep below its surface is

The Iran-Iraq War of the 1980s generally contributed to

Figure 42.2 -Under perfect competition the individual firm's economic profit is

A main factor determining gasoline demand between 2002 and 2008 was

If gas prices today were $2.00 per gallon, in terms of history this would be

Figure 42.2 -Under the cartel the market quantity is

Figure 42.2 -Under the cartel the individual firm's economic profit is (assuming that it wants to cheat on its quot A.

Figure 42.2 -Under perfect competition the market quantity is

The stability of cartel prices is challenged because

During the 1999-2005 period gasoline prices

Which of the following are true about cartels?

An event driving gasoline prices higher from 2006 to 2008 was

A cartel is formed when

Which of the following nations is NOT part of OPEC?

If gas prices today were $4.00 per gallon, in terms of history this would be

If gas prices today were $2.50 per gallon, in terms of history this would be

Figure 42.2 -Under perfect competition the individual firm's quantity is

Non-inflation-adjusted ("nominal")gasoline prices reached their all-time highs in

The run up in gasoline prices during 1999 and 2000

Refining capacity in the United States is

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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