After OPEC raised the price of crude oil in the 1970's, which of the following was the most important reason that there were shortages of gasoline?
a. Americans drove large, gas-guzzling vehicles
b. The increase in the price of crude oil by OPEC.
c. The effects of a price ceiling on gasoline prices imposed by the US government.
d. Increased commuting times resulting from traffic congestion.
c
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Just because a firm can deter entry by a competitor does not mean it will deter entry.
Answer the following statement true (T) or false (F)
The effective rate of protection for a product can be negative.
Indicate whether the statement is true or false.
Between 1980 and 2000, the national debt ______________.
A. stayed about the same B. approximately doubled C. approximately tripled D. increased over fivefold
Why might a company use barter rather than money to make a trade?
A. Barter trade is generally more efficient than money-based trade B. Barter can enable two firms to trade when their cash flows are limited C. Money requires a coincidence of wants, barter is more direct D. Money is efficient only for large transactions, so barter is preferred for smaller transactions