Coal Is an Input in the Production of Oil

question 40

Multiple Choice

Coal is an input in the production of oil. Suppose that over the last 3 months, the price of oil has increased and the quantity sold of oil has fallen. Other things remaining the same, which of the following is most likely to be true?

• A) There was a decrease in the demand for oil.
• B) Coal miners received large wage increases.
• C) Coal producers installed more efficient coal mining equipment.
• D) New mine operators entered the coal industry.
• E) New firms entered the market for oil.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind, affecting how people assess the frequency or importance of events.

Research Proposal

A research proposal is a document outlining a planned investigation on a specific topic, including methodology, objectives, and significance.

Semantics

The study of meaning in language, including the meanings of words, phrases, and sentences.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially the arrangement of words and phrases.