As a Result of Historically High Gasoline Prices in 2008,traffic

question 23

Multiple Choice

As a result of historically high gasoline prices in 2008,traffic volume in the United States (measured in terms of billions of miles driven per month) declined significantly.These changes were caused by a of gasoline and .

• A) surplus; a decrease in the quantity demanded of gasoline
• B) surplus; a decrease in the demand for gasoline
• C) shortage; a decrease in the quantity demanded of gasoline
• D) shortage; a decrease in the demand for gasoline
• E) shortage; an increase in the demand for gasoline

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Definitions:

Terms of Trade

The ratio at which a country can trade its exports for imports from other countries, reflecting the relative prices of exports and imports.

Gains from Specialization

The increase in overall production and efficiency that occurs when individuals or entities focus on specific tasks or functions they perform best.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

World Economic Resources

It refers to all natural, human, and capital resources that are available globally which support economic production and development.