Assume that the government of a nation rations the crude oil available to car owners each month which reduces the overall demand for petroleum. However, the nation continues to import oil from the world market. Which of the following will be observed in the oil market?
a. The world price of petroleum would decline.
b. The domestic price of petroleum would decline.
c. The domestic price of petroleum would increase.
d. The world price of petroleum will remain unaffected.
D
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Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?
A) 0 B) 5 C) 10 D) 15
Refer to the table above. For trade to occur along the lines of comparative advantage, wages in A relative to wages in B (measured in the same currency)
A) must be at least twice but less than 3 times as great. B) must be less than three times as small. C) must be greater than $2 but less than $3. D) Need more information to answer.
In the above figure, the curve that represents the most income inequality is
A) a. B) b. C) c. D) d.
Which of the following conditions would prevent price discrimination?
a. an economic profit b. a monopoly market structure c. profit maximization d. the inability to identify those customers willing to pay more e. the ability to prevent low-price customers from reselling to high-price customers