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:

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains unchanged.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing company.

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends.