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 quotation from the excerpt reveals the author's bias about the relationship between the rule of the majority and the rights of the minority?
- A. "The wishes of the smaller group will override the wishes of the larger group and this will create resentment."
- B. "Requiring a unanimous vote or more than a majority vote is meant to provide a safeguard against oppression."
- C. "In these circumstances, expect constant scheming, trickery, and tiresome delays, resulting in disgraceful deals that violate the public good."
- D. "In times of national emergency, the goodness, badness, weakness, and strength of the government is supremely important."
Correct Answer & Rationale
Correct Answer: C
Option C highlights the author's bias by suggesting that the majority's decisions can lead to unethical behavior that undermines public welfare. This reveals a concern for minority rights, indicating that the author believes majority rule may result in negative consequences for those not in power. Option A misrepresents the author's view, as it suggests that the smaller group's wishes will always be overridden, which does not directly reflect bias against majority rule. Option B focuses on safeguards against oppression, which does not convey bias but rather a protective measure. Option D addresses the government's performance during emergencies but fails to connect to the relationship between majority rule and minority rights, missing the core issue of bias.
Option C highlights the author's bias by suggesting that the majority's decisions can lead to unethical behavior that undermines public welfare. This reveals a concern for minority rights, indicating that the author believes majority rule may result in negative consequences for those not in power. Option A misrepresents the author's view, as it suggests that the smaller group's wishes will always be overridden, which does not directly reflect bias against majority rule. Option B focuses on safeguards against oppression, which does not convey bias but rather a protective measure. Option D addresses the government's performance during emergencies but fails to connect to the relationship between majority rule and minority rights, missing the core issue of bias.
Which feature of the U.S. system of government did de Tocqueville believe might cause conflict in society?
- A. The majority is able to achieve special rights.
- B. The minority is able to block popular legislation.
- C. Legislators must represent minority interests.
- D. Legislators sometimes act against majority rule.
Correct Answer & Rationale
Correct Answer: A
De Tocqueville observed that when the majority in a democracy can impose its will, it might lead to the oppression of minority groups, creating societal conflict. This reflects his concern about "tyranny of the majority," where the dominant group's interests overshadow the rights of others. Option B is incorrect because while minorities can influence legislation, de Tocqueville focused more on majority power. Option C misrepresents his views; he acknowledged the importance of minority representation but did not see it as a source of conflict. Option D is also inaccurate, as de Tocqueville emphasized the potential for the majority to dominate rather than legislators opposing the majority.
De Tocqueville observed that when the majority in a democracy can impose its will, it might lead to the oppression of minority groups, creating societal conflict. This reflects his concern about "tyranny of the majority," where the dominant group's interests overshadow the rights of others. Option B is incorrect because while minorities can influence legislation, de Tocqueville focused more on majority power. Option C misrepresents his views; he acknowledged the importance of minority representation but did not see it as a source of conflict. Option D is also inaccurate, as de Tocqueville emphasized the potential for the majority to dominate rather than legislators opposing the majority.
According to this graph, in which year did the U.S. government first achieve a budget surplus?
- A. 1996
- B. 1994
- C. 1998
- D. 2002
Correct Answer & Rationale
Correct Answer: C
The graph indicates that the U.S. government first achieved a budget surplus in 1998, as evidenced by the line crossing above the zero mark in that year. Option A (1996) shows a deficit, as the line remains below zero. Option B (1994) also reflects a deficit, indicating that the government had not yet balanced its budget. Option D (2002) is incorrect as it depicts a return to deficit after a surplus, confirming that the surplus was achieved earlier in 1998. Thus, 1998 is the first year when the budget surplus was realized.
The graph indicates that the U.S. government first achieved a budget surplus in 1998, as evidenced by the line crossing above the zero mark in that year. Option A (1996) shows a deficit, as the line remains below zero. Option B (1994) also reflects a deficit, indicating that the government had not yet balanced its budget. Option D (2002) is incorrect as it depicts a return to deficit after a surplus, confirming that the surplus was achieved earlier in 1998. Thus, 1998 is the first year when the budget surplus was realized.
Which conclusion can be drawn from the diagrams?
- A. The legislature is more representative of the people in a presidential democracy than in a parliamentary democracy.
- B. The branches of government are more independent of each other in a presidential democracy than in a parliamentary democracy.
- C. The executive branch is more accountable to the people in a parliamentary democracy than in a direct democracy.
- D. The people are more involved in governing in a presidential democracy than in a direct democracy.
Correct Answer & Rationale
Correct Answer: B
In a presidential democracy, the separation of powers is a key feature, allowing the executive, legislative, and judicial branches to operate independently. This independence enhances checks and balances, ensuring that no single branch can dominate. Option A is incorrect as both systems aim for representation, but the degree can vary based on specific contexts rather than the type of democracy. Option C misrepresents accountability; in parliamentary systems, the executive is directly accountable to the legislature, which is elected by the people. Option D is misleading; in a direct democracy, citizens have direct involvement in governance, often more so than in a presidential system.
In a presidential democracy, the separation of powers is a key feature, allowing the executive, legislative, and judicial branches to operate independently. This independence enhances checks and balances, ensuring that no single branch can dominate. Option A is incorrect as both systems aim for representation, but the degree can vary based on specific contexts rather than the type of democracy. Option C misrepresents accountability; in parliamentary systems, the executive is directly accountable to the legislature, which is elected by the people. Option D is misleading; in a direct democracy, citizens have direct involvement in governance, often more so than in a presidential system.