In August 2005, hurricane Katrina hit the Gulf States damaging approximately 20 percent of our oil refining capacity. This event
a. resulted in a massive building of new refining capacity which shifted the supply curve of gasoline to the left
b. shifted the supply curve of gasoline to the left thereby raising its price
c. shifted the demand curve of gasoline to the right because less gasoline was available
d. resulted in an inward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
e. resulted in an outward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
B
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Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be
a. $10 b. $5 c. $20 d. $40
Refer to the graph below. If tax rates are between b and d, then supply-side economists are of the opinion that a(n):
A. Increase in tax revenues will increase tax rates
B. Decrease in tax rates will increase tax revenues
C. Increase in tax rates will increase tax revenues
D. Decrease in tax revenues will decrease tax rates