Question

1. which rationing method was instituted for gasoline in the mid - 1970s? a. distribution of ration vouchers b. administration of gas sales through post offices c. manufacturing of more fuel - efficient automobiles d. purchasing days determined by license plate numbers 7. which of these best describes prices in a market economy? a. a signal for consumers to purchase less b. a signal for producers to manufacture less c. a set of compromises between buyers and sellers d. a set of compromises between the government and citizens 8. why does an increase in gas prices lead to less consumer spending on other items? a. the price of gas is largely elastic. b. the price of gas is largely inelastic. c. the demand for gas is largely elastic. d. the demand for gas is largely inelastic. 9. which of these events sparked the most extensive rationing in united states history? a. world war ii b. hurricane sandy c. the 1970s energy crisis d. the 1999 baltimore orioles exhibition game 10. which of these is a major problem in the execution of a rationing system. a. market spikes b. price neutrality c. price flexibility d. administrative expense

Explanation:

1. In the mid - 1970s, purchasing days based on license plate numbers was a gasoline rationing method.
2. In a market economy, prices are set through compromises between buyers and sellers.
3. Gas demand is inelastic, so when gas prices rise, consumers have less money for other items.
4. World War II led to the most extensive rationing in US history due to resource shortages for the war effort.
5. One major problem with a rationing system is the administrative expense of implementing and managing it.

Answer:

1. D. purchasing days determined by license plate numbers
2. C. a set of compromises between buyers and sellers
3. D. The demand for gas is largely inelastic.
4. A. World War II
5. D. administrative expense