If a Hurricane Were to Destroy the Major Oil Refineries

question 114

Multiple Choice

If a hurricane were to destroy the major oil refineries on the Gulf Coast, it would likely cause a:

• A) short-run supply shock.
• B) long-run supply shock.
• C) short-run demand shock.
• D) long-run demand shock.

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Definitions:

Marginal Benefit

This is the additional benefit received from the consumption of one more unit of a good or service.

Output Level

Refers to the quantity of goods or services produced by a firm or economy at a given point in time.

Product Markets

Marketplaces where final goods or services are offered to consumers, businesses, and the government.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale at a given price level, typically upward sloping.