Refer to the Information Provided in Figure 4

question 111

Multiple Choice

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States allowed drilling for more oil in the Gulf of Mexico, it could

• A) reduce U.S. oil imports without a tariff.
• B) decrease the demand for domestic oil.
• C) reduce the supply of domestic oil.
• D) increase the domestic price of oil.

Understand how changes in the price of goods and income affect the budget line on a graph.

Analyze the impact of price changes on a consumer's budget set and consumption possibilities.

Calculate the price of one good given the price of another good and a fixed budget.

Determine the maximum quantity of goods a consumer can afford under budget and dietary restrictions.

---

Definitions:

European Allies

Countries in Europe that are allied or partnered with each other, often referring to alliances formed during major conflicts such as World War I or World War II.

Vietnamese War

Also known as the Vietnam War, a prolonged conflict from 1955 to 1975 between communist North Vietnam, supported by its allies, and South Vietnam, backed by the United States.

Commit Troops

The act of deploying military personnel to a specific location or situation in order to achieve a strategic objective or to participate in combat operations.

J William Fulbright

An American politician and senator known for his opposition to the Vietnam War and his contribution to the establishment of the Fulbright Scholarship Program.