The decrease in the price of gasoline to a national average of less than $2.5 during the summer of 2020 was most likely a result of
A. an increase in supply resulting from higher refinery output along with a decrease in demand in summer driving.
B. an increase in demand due to increase in summer driving along with a decrease in supply resulting from reduced refinery output.
C. an increase in demand due to reduced summer driving.
D. an increase in supply resulting from higher refinery output.
Answer: D
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Which of the following purchases is most likely to rise as the result of a temporary tax cut, according to the permanent-income hypothesis?
A) television sets and other consumer durables B) steak dinners and other consumer non-durables C) trips to the Virgin Islands and other vacation destinations D) theater tickets and other entertainment expenditures
Patents and copyrights are designed to
a. eliminate above-normal profit in the short run b. move monopoly prices closer to prices that would occur under perfect competition c. prevent the capitalization of monopoly profit d. allow a period of above-normal profit to encourage innovation e. limit a monopoly's rent-seeking activities
To measure the gains and losses from a tax on a good, economists use the tools of
a. macroeconomics. b. welfare economics. c. international-trade theory. d. circular-flow analysis.
A perfectly competitive firm's marginal cost curve above the minimum of the average variable cost curve is its:
A. short-run supply curve. B. average cost schedule. C. capacity output schedule. D. total revenue minus total cost schedule.