Question 1

The underlying reason why the expected future price of gasoline plays an important role in the current price of gasoline is because

Accepted Answer

A) along the supply chain firms want to hold onto gasoline when they think the price is about to rise and sell it quickly when they think the price is about to fall. 
B) the market is overly regulated. 
C) the market is governed by two major players. 
D) the government is in complete control of the energy market. 
A) along the supply chain firms want to hold onto gasoline when they think the price is about to rise and sell it quickly when they think the price is about to fall. 
B) the market is overly regulated. 
C) the market is governed by two major players. 
D) the government is in complete control of the energy market.

Question 2

When prices are the same at two neighboring gas stations, economists attribute this to the market forces of

Accepted Answer

A) perfect competition. 
B) monopoly. 
C) oligopoly. 
D) monopolistic competition. 
A) perfect competition. 
B) monopoly. 
C) oligopoly. 
D) monopolistic competition.

Question 3

Proven oil reserves in the world amount to

Accepted Answer

A) 1,653 barrels. 
B) 1,653 million barrels. 
C) 1,653 billion barrels. 
D) 1,653 trillion barrels. 
A) 1,653 barrels. 
B) 1,653 million barrels. 
C) 1,653 billion barrels. 
D) 1,653 trillion barrels.

Question 4

Figure 42.2
-Under the cartel the individual firm's economic profit is (assuming it obeys 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 5

The large decrease in crude oil prices during 2014-2015 was attributable to

Accepted Answer

A) hydraulic fracturing. 
B) directional drilling. 
C) hyperaccurate seismologic mapping. 
D) all of these. 
A) hydraulic fracturing. 
B) directional drilling. 
C) hyperaccurate seismologic mapping. 
D) all of these.

Question 6

The large increase in the elasticity of supply in crude oil during 2014-2015 created ____ price volatility.

Accepted Answer

A) enormously greater 
B) slightly greater 
C) lesser 
D) zero 
A) enormously greater 
B) slightly greater 
C) lesser 
D) zero

Question 7

Energy prices rose during 2005 largely because of

Accepted Answer

A) increased demand in Central America. 
B) increased demand in China. 
C) weather related (hurricanes)in the Gulf of Mexico. 
D) increased demand in China and weather related (hurricanes)in the Gulf of Mexico. 
A) increased demand in Central America. 
B) increased demand in China. 
C) weather related (hurricanes)in the Gulf of Mexico. 
D) increased demand in China and weather related (hurricanes)in the Gulf of Mexico.

Exam 42: Energy Prices

The underlying reason why the expected future price of gasoline plays an important role in the current price of gasoline is because

When prices are the same at two neighboring gas stations, economists attribute this to the market forces of

Proven oil reserves in the world amount to

Figure 42.2 -Under the cartel the individual firm's economic profit is (assuming it obeys its quot A.

The large decrease in crude oil prices during 2014-2015 was attributable to

The large increase in the elasticity of supply in crude oil during 2014-2015 created ____ price volatility.

Energy prices rose during 2005 largely because of

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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