Refer to the Information Provided in Figure 4

question 86

Multiple Choice

Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil,

• A) the quantity demanded of oil will be reduced by 4 million barrels per day.
• B) the quantity of oil supplied by U.S. firms will increase by 8 million barrels per day.
• C) U.S. imports of oil will increase by 4 million barrels per day.
• D) the price of oil in the U.S. will increase to $150 per barrel.

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Definitions:

Racial Relations

The interactions and social dynamics between people of different racial backgrounds.

Ethnic Relations

The study and analysis of how different ethnic groups interact, coexist, and sometimes conflict within societies.

Economic Advantages

Benefits that an individual, company, or country has in producing a specific good or service at a lower cost compared to competitors.

Federal Policy

Governmental guidelines, regulations, and laws at the national level that govern the behavior of individuals and organizations.