More than 80 percent of the home heating oil used in the United States goes to the Northeast. In Vermont, the vast majority of people there use oil to stay warm when it's cold outside
Richard Izor heats his home with oil and inquires, "I'd like to see them come in and put a ceiling on the oil price now before it gets any higher. Why they haven't done this is more than I can understand." Which of the following is NOT likely to occur if such a price ceiling was imposed? A) There would be a surplus of heating oil.
B) A heating oil shortage may occur.
C) A black market for heating oil may be created.
D) There would be an increase in inefficiency in the heating oil market.
A
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State chartered banks were supposed to be driven out of business by the National Currency Act of 1863 and the National Banking Act of 1864 by
A) imposing a tax on their issuance of state bank notes. B) prohibiting them from having interstate branches. C) prohibiting them from paying interest on demand deposits. D) regulating the amount of interest they could pay on savings accounts.
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, deadweight loss occurs because
A) consumers place a greater value on the last apartment unit than the cost to supply it. B) the supplier of the last apartment unit receives a rental price that is less than the marginal cost of supplying it. C) the quantity of apartments supplied has decreased. D) All of the above.
The inflation tax falls mostly heavily on
a. those who hold a lot of currency and accounts for a large share of U.S. government revenue. b. those who hold a lot of currency but accounts for a small share of U.S. government revenue. c. those who hold little currency and accounts for a large share of U.S. government revenue. d. those who hold little currency but accounts for a small share of U.S. government revenue.
Short-term interest rates show the cost of borrowing money for how long?
(A) Between 10 and 30 years. (B) For no more than a month. (C) For a few days or months. (D) Between a few months and two years.