Based on Figure 4.1, food is:

Assume the Congress approves increased drilling for oil in the U.S. to address the current energy shortage. People who are in favor of this policy argue that, ceteris paribus, this would cause:

A) an increase in the equilibrium price and quantity of oil. B) a decrease in the equilibrium price and quantity of oil. C) a decrease in equilibrium price and increase in the equilibrium quantity of oil. D) an increase in equilibrium price and a decrease in the equilibrium quantity of oil.

Natural resources are

a. not considered scarce because no one pays for them b. only desired for use in producing other goods c. included in the category of resources called gifts of nature d. available in unlimited quantities e. not considered scarce because they are not produced by society