What Happened as a Result of the Elimination of Price

question 11

Multiple Choice

What happened as a result of the elimination of price controls on oil and gasoline in 1981?

• A) The supply of gas and oil declined.
• B) The shortage of gasoline was eliminated nearly overnight.
• C) The price of oil increased dramatically, and stayed high until the early 1990s.
• D) The shortage of gasoline was eliminated, but it took several years.

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Definitions:

Flexible Budget

A budget that modifies based on fluctuations in activity levels or volume.

Output

The quantity of goods or services produced in a given time period by a company, individual, or machine.

Budgeting

The process of creating a plan to spend your money, outlining anticipated income and expenses for a future period.

January

The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.