The main effect of Hurricane Katrina in September 2005 on the United States market for gasoline was to
a. cause an increase in demand and price as people topped off the gas tanks and fled New Orleans
b. increase supply as the price rose and production shifted to newly discovered oil fields
c. decrease the supply and demand simultaneously leaving price unchanged
d. increase the demand and price as people purchased gasoline in advance of anticipated price increases
e. decrease supply and cause the price to rise from $2 per gallon to over $3 per gallon
e. decrease supply and cause the price to rise from $2 per gallon to over $3 per gallon
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Refer to Variable Cost of Production. If the firm actually has $20 in fixed costs, the average cost of the second unit of output is
The following questions refer to the following table which shows a firm's variable costs of production.
a. $20 per unit.
b. $25 per unit.
c. $30 per unit.
d. $35 per unit.
Property rights
A) only need to be found in wealthy segments of the population. B) need to be universal. C) do not promote incentives. D) do not promote efficiency
The consumption function shows which of the following relationships in the economy?
a. The relation between consumption and saving, other things constant b. The relation between consumption and income, other things constant c. The relation between disposable income and taxes, other things constant d. The relation between saving and expenditure, other things constant
Value added is calculated by:
A. subtracting the cost of materials used in production from the value of sales. B. adding the cost of materials used in production to the value of sales. C. adding the value of output to the value of inputs. D. subtracting the value of sales from the cost of materials used in production.