This information is from a 2015 U.S. Energy Information Administration (EIA) report.
Oil Production
Short-Term Energy Outlook
January was the seventh consecutive month in which monthly average North Sea... crude oil prices decreased, reaching $48 per barrel, the lowest since March 2009. The price decline reflects continued growth in U.S. oil production and strong global supply, amid weaker global oil demand growth. This contributed to rising global oil inventories. In January, estimated total commercial oil inventories reached their highest level since August 2010.
Gasoline Prices
Driven largely by falling crude oil prices, U.S. weekly regular gasoline retail prices averaged $2.04 per gallon on January 26, the lowest since April 6, 2009. EIA expects U.S. regular gasoline retail prices, which averaged $3.36 per gallon in 2014, to average $2.33 per gallon in 2015. The average household is now expected to spend about $750 less for gasoline in 2015 compared with last year because of lower prices. The projected regular gasoline retail price increases to an average of $2.73 per gallon in 2016.
Which statement best explains the situation described in the paragraphs?
- A. Crude oil prices in 2014 encouraged U.S. families to buy less gasoline in 2015.
- B. Crude oil production levels have caused U.S. gasoline prices to fall.
- C. Greater crude oil reserves have caused the U.S. government to reduce gasoline prices.
- D. Lower crude oil production will cause U.S. gasoline prices to return to 2014 levels by 2016.
Correct Answer & Rationale
Correct Answer: B
Option B accurately reflects the relationship between crude oil production levels and gasoline prices. Increased production typically leads to lower prices, as supply outstrips demand. Option A incorrectly suggests a direct correlation between crude oil prices in 2014 and gasoline purchases in 2015, neglecting the influence of production levels. Option C misrepresents the role of reserves; while greater reserves can impact prices, it is production levels that directly affect market prices. Option D speculates on future price increases due to lower production, which is uncertain and not directly supported by the information provided.
Option B accurately reflects the relationship between crude oil production levels and gasoline prices. Increased production typically leads to lower prices, as supply outstrips demand. Option A incorrectly suggests a direct correlation between crude oil prices in 2014 and gasoline purchases in 2015, neglecting the influence of production levels. Option C misrepresents the role of reserves; while greater reserves can impact prices, it is production levels that directly affect market prices. Option D speculates on future price increases due to lower production, which is uncertain and not directly supported by the information provided.
Other Related Questions
Which statement best describes the action of the people in the photograph?
- A. They are utilizing an 8th Amendment right to secure the release of a colleague who was jailed unfairly.
- B. They are utilizing a 6th Amendment right to secure a fair trial for a jailed associate.
- C. They are utilizing a 1st Amendment right to secure equality under the law.
- D. They are utilizing a 14th Amendment right to secure the opportunity to vote in federal elections.
Correct Answer & Rationale
Correct Answer: C
The action depicted in the photograph aligns with the 1st Amendment, which guarantees freedoms concerning speech, assembly, and the right to petition the government. The individuals are likely advocating for equality under the law, a fundamental principle of democratic society. Option A incorrectly references the 8th Amendment, which focuses on protection against excessive bail and cruel punishment, not the right to protest for a colleague's release. Option B misapplies the 6th Amendment, which ensures the right to a fair trial, rather than addressing broader issues of equality. Option D inaccurately connects the situation to the 14th Amendment, which deals with citizenship rights and equal protection, not specifically voting rights.
The action depicted in the photograph aligns with the 1st Amendment, which guarantees freedoms concerning speech, assembly, and the right to petition the government. The individuals are likely advocating for equality under the law, a fundamental principle of democratic society. Option A incorrectly references the 8th Amendment, which focuses on protection against excessive bail and cruel punishment, not the right to protest for a colleague's release. Option B misapplies the 6th Amendment, which ensures the right to a fair trial, rather than addressing broader issues of equality. Option D inaccurately connects the situation to the 14th Amendment, which deals with citizenship rights and equal protection, not specifically voting rights.
The United States fought in World War II from 1941 to 1945. Which statement explains the peak annual inflation rate during the 1940s?
- A. Consumer demand increased due to the end of rationing.
- B. Manufacturing decreased because of less demand for weapons.
- C. Government spending increased due to national defense.
- D. Wages decreased because of competition for scarce jobs.
Correct Answer & Rationale
Correct Answer: C
The peak annual inflation rate during the 1940s can be attributed to increased government spending due to national defense efforts. This surge in spending stimulated the economy and raised prices as the demand for goods and services outpaced supply. Option A is incorrect; while consumer demand did rise post-rationing, it was not the primary driver of inflation during the war years. Option B is also wrong, as manufacturing actually increased during the war to meet military needs. Option D misrepresents the labor market; wages generally rose due to high demand for workers, not decreased. Thus, government spending for defense was the key factor in driving inflation during this period.
The peak annual inflation rate during the 1940s can be attributed to increased government spending due to national defense efforts. This surge in spending stimulated the economy and raised prices as the demand for goods and services outpaced supply. Option A is incorrect; while consumer demand did rise post-rationing, it was not the primary driver of inflation during the war years. Option B is also wrong, as manufacturing actually increased during the war to meet military needs. Option D misrepresents the labor market; wages generally rose due to high demand for workers, not decreased. Thus, government spending for defense was the key factor in driving inflation during this period.
Which statement from the excerpts is a fact?
- A. "When people blame the current crisis on the free market, they are making a grave intellectual error." (paragraph 3)
- B. "... we ultimately included a provision in the Affordable Care Act that people who can afford to buy health insurance should take the responsibility to do so." (paragraph 7)
- C. "Like other areas of the economy where the federal government wields its heavy hand, health care is overregulated and in need of serious market reforms." (paragraph 2)
- D. "... [T]oday's decision was a victory for people all over this country whose lives will be more secure because of this law and the Supreme Court's decision to uphold it." (paragraph 5)
Correct Answer & Rationale
Correct Answer: B
Option B presents a factual statement regarding the Affordable Care Act, specifically mentioning a provision that mandates individuals who can afford health insurance to take responsibility for purchasing it. This is a verifiable aspect of the legislation. In contrast, Option A expresses an opinion about blaming the free market, which is subjective and open to interpretation. Option C also conveys a viewpoint on government regulation and reform needs, lacking objective verification. Lastly, Option D describes a perceived outcome of a decision, reflecting an opinion on its impact rather than presenting a fact. Thus, only Option B stands as an objective statement grounded in legislation.
Option B presents a factual statement regarding the Affordable Care Act, specifically mentioning a provision that mandates individuals who can afford health insurance to take responsibility for purchasing it. This is a verifiable aspect of the legislation. In contrast, Option A expresses an opinion about blaming the free market, which is subjective and open to interpretation. Option C also conveys a viewpoint on government regulation and reform needs, lacking objective verification. Lastly, Option D describes a perceived outcome of a decision, reflecting an opinion on its impact rather than presenting a fact. Thus, only Option B stands as an objective statement grounded in legislation.
Which prediction is supported by both graphs?
- A. The average wage for farm workers will decrease..
- B. The average cost for agricultural produce will decrease.
- C. The operating cost of running a farm will increase.
- D. The number of people required for producing food will increase.
Correct Answer & Rationale
Correct Answer: C
Option C is supported by both graphs, indicating an upward trend in operational costs due to factors like inflation and increased resource prices. This aligns with economic patterns observed in the agricultural sector. Option A is incorrect as both graphs do not show a decline in farm worker wages; rather, they suggest stability or growth. Option B is misleading; the graphs do not reflect a decrease in agricultural produce costs, which often correlate with rising operational expenses. Option D is also unsupported, as the data does not indicate an increase in labor requirements, but rather highlights efficiency improvements in farming practices.
Option C is supported by both graphs, indicating an upward trend in operational costs due to factors like inflation and increased resource prices. This aligns with economic patterns observed in the agricultural sector. Option A is incorrect as both graphs do not show a decline in farm worker wages; rather, they suggest stability or growth. Option B is misleading; the graphs do not reflect a decrease in agricultural produce costs, which often correlate with rising operational expenses. Option D is also unsupported, as the data does not indicate an increase in labor requirements, but rather highlights efficiency improvements in farming practices.