Question :
31.Thesupplyofoilislikelytobe
a.inelasticinboththeshortrunandlongrun.
b.elasticinboththeshortrunandlongrun.
c.elasticintheshortrunandinelasticinthelongrun.
d. : 1262403
31.Thesupplyofoilislikelytobe
a.inelasticinboththeshortrunandlongrun.
b.elasticinboththeshortrunandlongrun.
c.elasticintheshortrunandinelasticinthelongrun.
d.inelasticintheshortrunandelasticinthelongrun.
32.Intheearly1970s,OPEC’sgoalwasto
a.decreasetheworld-widepriceofoilsothatthequantitydemandedincreased,thusraisingtotalrevenuesforOPECmembers.
b.increasetheworld-widepriceofoilbyreducingthequantityofoilsupplied.
c.increasetheworld-widepriceofoilbyincreasingthequantityofoilsupplied,thusraisingtotalrevenuesforOPECmembers.
d.decreasetheworld-widepriceofoilsothatquantitydemandedincreased.
33.WhichofthefollowingwasnotareasonOPECfailedtokeepthepriceofoilhigh?
a.Overthelongrun,producersofoiloutsideofOPECrespondedtohigherpricesbyincreasingoilexplorationandbybuildingnewextractioncapacity.
b.Consumersrespondedtohigherpriceswithgreaterconservation.
c.Consumersreplacedoldinefficientcarswithnewerefficientones.
d.TheagreementOPECmemberssignedallowedeachcountrytoproduceasmuchoilaseachwanted.
34.OPECsuccessfullyraisedtheworldpriceofoilinthe1970sandearly1980s,primarilydueto
a.aninelasticdemandforoilandareductionintheamountofoilsupplied.
b.areductionintheamountofoilsuppliedandaworld-wideoilembargo.
c.aworld-wideoilembargoandanelasticdemandforoil.
d.areductionintheamountofoilsuppliedandanelasticdemandforoil.
35.WhywasOPECunabletomaintainhighoilpricesinthelongrun?
a.Demandandsupplyarebothelasticinthelongruncomparedtotheshortrun.
b.Demandandsupplyarebothinelasticinthelongruncomparedtotheshortrun.
c.Demandiselasticandsupplyisinelasticinthelongruncomparedtotheshortrun.
d.Demandisinelasticandsupplyiselasticinthelongruncomparedtotheshortrun.
36.Ifmarijuanawerelegalized,itislikelythattherewouldbeanincreaseinthesupplyofmarijuana.Advocatesofmarijuanalegalizationarguethatthiswouldsignificantlyreducetheamountofrevenuegoingtothecriminalorganizationsthatcurrentlysupplymarijuana.Theseadvocatesbelievethatthe
a.supplyformarijuanaiselastic.
b.demandformarijuanaiselastic.
c.supplyformarijuanaisinelastic.
d.demandformarijuanaisinelastic.
37.Underwhichofthefollowingconditionswouldtheinterdictionofillegaldrugsresultinadecreaseinthequantityofdrugs soldandinadecreaseintotalspendingonillegaldrugsbydrugusers?
a.Theinterdictionhastheeffectofshiftingthedemandcurveforillegaldrugstotheright.
b.Thepriceelasticityofdemandforillegaldrugsis1.3.
c.Thepriceelasticityofsupplyforillegaldrugsis0.8.
d.Asaresultoftheinterdiction,thepriceofillegaldrugsincreasesby20percentandthequantityofillegaldrugssolddecreasesby16percent.
38.Whichofthefollowingstatementsdoesnothelptoexplainwhygovernmentdruginterdictionincreasesdrug-relatedcrime?
a.Thedemandforillegaldrugsisinelastic.
b.Interdictionresultsindrugaddictshavingagreaterneedforquickcash.
c.Interdictionresultsinanincreaseintheamountofmoneyneededtobuythesameamountofdrugs.
d.Governmentdrugprogramsaremorelenientnowwithdrugoffendersthantheywereinthe1980s.
39.Whichofthefollowingstatementshelpstoexplainwhygovernmentdruginterdictionincreasesdrug-relatedcrime?
a.Thedirectimpactisonbuyers,notsellers.
b.Successfuldruginterdictionpoliciesreducethedemandforillegaldrugs.
c.Drugaddictswillhaveanevengreaterneedforquickcashtosupporttheirhabits.
d.Intheshortrun,bothequilibriumquantitiesandpriceswillfallinthemarketsforillegaldrugs.
40.Whichofthefollowingstatementsisnotcorrectconcerninggovernmentattemptstoreducetheflowofillegaldrugsintothecountry?Druginterdiction
a.raisespricesandtotalrevenueinthedrugmarket.
b.canincreasedrug-relatedcrime.
c.shiftsthedemandcurvefordrugstotheleft.
d.shiftsthesupplycurveofdrugstotheleft.