All else equal, as the price of oil rises, potential profits from producing oil ________ which ________ oil companies to look for additional sources of oil
A) increase; encourages
B) increase; discourages
C) decrease; encourages
D) decrease; discourages
A
You might also like to view...
When Americans increase their demand for Japanese goods,
A) the supply of dollars will fall, and the demand for yen will fall. B) the supply of dollars will rise, and the demand for yen will rise. C) the demand for dollars will fall, and the demand for yen will rise. D) the demand for dollars will rise, and the demand for yen will rise.
The law of diminishing marginal returns is seen in the
A) calendar year. B) short run. C) long run. D) market horizon.
If national income is equal to zero, then consumption must also be equal to zero
Indicate whether the statement is true or false
An externality is
a. the costs that parties incur in the process of agreeing and following through on a bargain. b. the uncompensated impact of one person's actions on the well-being of a bystander. c. the proposition that private parties can bargain without cost over the allocation of resources. d. a market equilibrium tax.