Ultimately, Repealing the Price Controls on Gasoline and Oil

question 126

Multiple Choice

Ultimately, repealing the price controls on gasoline and oil:

• A) led to permanently higher gasoline prices.
• B) led to a higher supply of gasoline and lower prices.
• C) was disastrous since the market collapsed due to a lack of government regulation.
• D) was not able to eliminate the shortages of gasoline in the United States.

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Definitions:

Trust Agreement

A legal document establishing a trust and outlining the rules and guidelines that the trustees must follow in managing the trust assets for the benefit of the beneficiaries.

Present Value

The worth in present terms of a sum of money due in the future or sequences of cash receipts, using a given rate of return for discounting.

Discount Rate

The rate of interest applied to calculate the current value of future cash flows.

Cash Flows

The sum total of cash and assets similar to cash that shift into and out of a commercial establishment.