In 2017, destruction to U.S. gasoline refineries was caused by back-to-back storms along the U.S. Gulf Coast-Hurricane Harvey and Hurricane Irma In one week, the average price of a gallon of gasoline in the United States increased by about 20 cents. Which of the following best explains why these events pushed up the price of gasoline?
A. The supply curve for gasoline shifted to the right along the demand curve for gasoline.
B. The demand curve for gasoline shifted to the right along the supply curve for gasoline.
C. The supply curve for gasoline shifted to the left along the demand curve for gasoline.
D. The demand curve for gasoline shifted to the left along the supply curve for gasoline.
Answer: C
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The sum of the unemployment rate and the inflation rate is known as:
a. the macroeconomic index. b. the mortality rate. c. the market index. d. the misery index. e. a coincident indicator.
Taxes assessed on firms and employees on wages and salaries earned are called
A) dividend taxes. B) payroll taxes. C) corporate profits taxes. D) earned income taxes.
The figure below shows the marginal external benefit curve (MEB) from the domestic production of mopeds. A tariff has caused domestic production to increase from 500,000 to 600,000.
The increase in external benefits to the nation of the increased production of mopeds because of the tariff is
A. $5 million. B. $2.5 million. C. $13.25 million. D. $7.5 million.
Which of the following is an example of a supply shock?
A. A surge in consumer optimism prompts increased buying of goods and services. B. A surprise tax rebate from the government gives people more money to spend. C. A dramatic increase in energy prices increases production costs for firms in the economy. D. Government increases spending on education.