Use the Information for the Question(s)below

question 87

Multiple Choice

Use the information for the question(s) below. As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. Another oil refiner is offering to trade you 10,100 bbl of Alaska North Slope (ANS) crude oil for 9,950 bbl of West Texas Intermediate (WTI) crude oil. Assuming you just purchased 9,950 bbl of WTI crude at the current market price, the total revenue (cost) to you if you take the trade is closest to ________.

• A)$755,650
• B)$766,150
• C)$767,600
• D)$776,650

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Definitions:

Large Numbers of People

A phrase that refers to situations, studies, or phenomena involving a significant population size.

Normative Economic Statement

A statement expressing a value judgment about what ought to be, based on personal values or opinions rather than factual evidence.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by gross domestic product (GDP) growth.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.