The states of Texas and Louisiana relax regulations on where gasoline refineries can operate resulting in more refineries. By dragging the supply curve left or right or selecting the quantity supplied, show the effect that this event will have on the gasoline market. In this scenario, presume the relaxed regulations increases the number of gasoline refineries in operation.
Answer: The quantity supplied shifts right
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In the early 1980s, the disinflation in the United States
a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession.
An elasticity of 1 would be considered
A. perfectly elastic. B. elastic. C. unit elastic. D. inelastic.
Many government programs, such as unemployment compensation, operate on a deficit during recessions and a surplus during periods of economic expansion. The programs are referred to as
A. automatic stabilizers. B. discretionary fiscal policy. C. Ricardian equivalence. D. Recognition time lag.
The true economic costs of pollution control are the
A. Improved resource productivity levels provided by pollution control. B. Dollars spent on pollution control equipment, administrative costs, compliance training, and the like. C. Most highly valued alternative goods and services that could be produced if the resources were not used to reduce pollution. D. Resources used to control pollution.