The market for gasoline in May is in equilibrium, at a market clearing price of $4.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes
A) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
B) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
C) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
D) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
A
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If personal taxes are cut temporarily, the resulting
a. increase in personal saving would be larger than if they were cut permanently. b. decrease in personal saving would be larger than if they were cut permanently. c. decrease in personal saving would be smaller than if they were cut permanently. d. increase in personal saving would be smaller than if they were cut permanently.
The higher the concentration ratio is in an industry, the more likely it is that
A) the industry is perfectly competitive. B) the market share of the smallest four firms is larger. C) the market share of the largest four firms is smaller. D) the industry has an oligopoly.
There are several institutional structures that promote and sustain economic growth. These factors include:
What will be an ideal response?
Following World War I and World War II, the United States had a
A. small trade deficit. B. large trade deficit. C. small trade surplus. D. large trade surplus.