Other things equal, which of the following might shift the demand curve for gasoline to the left?
A. The discovery of vast new oil reserves in Montana.
B. The development of a low-cost electric automobile.
C. An increase in the price of train and air transportation.
D. A large decline in the price of automobiles.
Answer: B
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Many residents of the city of Adelphia drive without automobile insurance. Assuming that Adelphia is just like any other city and these are risk averse individuals, which of the following is most likely TRUE?
A) Economic models do not work. B) These people maximize wealth. C) The price of automobile insurance exceeds their maximum value of insurance. D) There are no automobile accidents or thefts in the city of Adelphia.
New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy
Indicate whether the statement is true or false