Because Producing More Oil Requires a Significant Increase in Exploration

question 64

Multiple Choice

Because producing more oil requires a significant increase in exploration and drilling costs, the supply curve for oil is:

• A) relatively elastic.
• B) relatively inelastic.
• C) either elastic or inelastic.
• D) unit elastic.

Recognize the aspects of agency influence and the concept of a "captured" agency.

Understand the role of Congress and other governmental figures in the oversight and budgeting of agencies.

Differentiate between the types of regulation (social, economic, safety) and the agencies primarily responsible for each.

Understand the role and powers of administrative agencies.

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being equal.

Student Income

The amount of money earned or received by students from employment, grants, stipends, or other sources while pursuing their studies.

Demand RISE

An increase in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.