1. Market demand for gasoline is P=15-2Q and market supply is P=2+3Q. The external cost due to pollution is $1. The soci

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1. Market demand for gasoline is P=15-2Q and market supply is P=2+3Q. The external cost due to pollution is $1. The socially efficient quantity of gasoline is:
a. 2
b. 2.2
c. 2.4
d. 2.6
2. If the price elasticity of demand for gasoline is 1, that means
a. The demand for gas is very elastic
b. One percent increase in price would cause a one percent decrease in quantity demanded for gas
c. One percent increase in price would cause a tone percent increase in quantity demanded for gas
d. The demand for gas is very inelastic
4. A family has recently installed new triple-pane windows, replaced the weather stripping on their doors, and added additional insulation in the attic and basement. Their electricity
usage this winter is 10% lower than in years past despite setting their thermostat at 5%
higher. Which of the following must be true?
a. The scenario shows a backfire effect.
b. The home improvements were economically efficient.
c. This scenario shows evidence of a rebound effect.
d.This family is practicing energy conservation.
5. How does economic course differ from energy economics?
a. Energy is a relatively scarce unlikely resource studied in other courses.
b. Economists focus on the inevitable depletion of fossil fuel resources.
c. Energy efficiency is equivalent to economic efficiency.
d. Energy prices fluctuate more than prices of most goods and services.