Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
What will be an ideal response?
Producers will increase the production of fuel-efficient cars.
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In the United States, between 2007 and 2012, carbon dioxide emissions fell by 12 percent, primarily because of
a. fewer highway miles driven by cars and trucks. b. expanded use of ethanol as the result of regulations imposed by the Environmental Protection Agency. c. an increase in the supply and lower prices of natural gas, leading to substitution of this cleaner fuel for coal in the generation of electricity. d. milder weather in the nation during the period, which reduced the energy demanded, and fuel used for heating and cooling.
When an economy is at its natural rate of unemployment, which of the following will be true?
A) Only structural unemployment as a result of technological change will exist in the economy. B) The labor force participation rate will be 100%. C) The unemployment rate will be greater than 0%. D) The unemployment rate will be 0%.
If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
a. price elastic. b. perfectly inelastic. c. unit elastic with respect to price. d. price inelastic.
Price leadership is a(n) ______ that develops over time.
a. allocative efficiency b. tying technique c. horizontal merger d. implied understanding