The Three Diagrams Below Each Show a Supply Curve for Oil

question 16

Multiple Choice

The three diagrams below each show a supply curve for oil tankers over a relatively short period of time. FIGURE 13-3
-Refer to Figure 13-3.Consider oil tankers as a factor of production (for example,for the production of gasoline) .Which diagram shows the most mobility of this factor of production?

• A)diagram 1
• B)diagram 2
• C)diagram 3
• D)none of the diagrams
• E)each diagram shows mobility

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Definitions:

Earmarks

Designated funds in a budget that are set aside for specific projects or purposes, often at the direction of lawmakers.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many individuals simultaneously without diminishing the good's availability to any single user.

Quasi-Public Goods

Goods that are not fully non-excludable or non-rivalrous, falling between pure public goods and private goods, often provided by the government.

Negative Externalities

Unintended adverse effects of a transaction that impact third parties who are not part of the transaction.