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 conclusion is best supported by information in the table and article?
- A. Individuals contributed a total amount of money equal to the total of all other sources of donations.
- B. Individuals contributing the smallest quantity of money insignificantly impact presidential campaigns.
- C. Individuals donated the greatest total amount although many contributions were relatively small.
- D. Individuals have more influence on the proposed policies of presidential candidates than groups do.
Correct Answer & Rationale
Correct Answer: C
Option C is supported by the data, indicating that while many individual contributions were small, they collectively formed the largest portion of total donations to presidential campaigns. This highlights the significant role individuals play despite the size of their contributions. Option A is incorrect as it suggests individuals’ contributions equaled all other sources, which is not supported by the data. Option B misrepresents the impact of smaller donations; even small contributions can collectively influence campaign funding significantly. Option D overstates individuals' influence on policy compared to groups, which often have more resources and organized lobbying power.
Option C is supported by the data, indicating that while many individual contributions were small, they collectively formed the largest portion of total donations to presidential campaigns. This highlights the significant role individuals play despite the size of their contributions. Option A is incorrect as it suggests individuals’ contributions equaled all other sources, which is not supported by the data. Option B misrepresents the impact of smaller donations; even small contributions can collectively influence campaign funding significantly. Option D overstates individuals' influence on policy compared to groups, which often have more resources and organized lobbying power.
How did the position expressed by President Johnson differ from the position expressed by Senator Russell?
- A. Only Senator Russell said that state governments were sufficiently protecting the rights of citizens.
- B. Only Senator Russell supported the federal government's intervention.
- C. Only President Johnson supported the state governments' rights to manage their own affairs.
- D. Only President Johnson believed that the federal government was authorized to intervene.
Correct Answer & Rationale
Correct Answer: A
President Johnson emphasized the need for federal intervention to protect citizens' rights, believing that state governments were often inadequate. In contrast, Senator Russell argued that state governments were effectively safeguarding those rights, reflecting a stance of local governance. Option B is incorrect because Senator Russell did not support federal intervention. Option C misrepresents Johnson’s position; he favored federal oversight rather than state autonomy. Option D inaccurately attributes the belief in federal authority solely to Johnson, as Russell did not share this view. Thus, the distinction lies in Russell's confidence in state governments versus Johnson's call for federal action.
President Johnson emphasized the need for federal intervention to protect citizens' rights, believing that state governments were often inadequate. In contrast, Senator Russell argued that state governments were effectively safeguarding those rights, reflecting a stance of local governance. Option B is incorrect because Senator Russell did not support federal intervention. Option C misrepresents Johnson’s position; he favored federal oversight rather than state autonomy. Option D inaccurately attributes the belief in federal authority solely to Johnson, as Russell did not share this view. Thus, the distinction lies in Russell's confidence in state governments versus Johnson's call for federal action.
How did Chief Justice Marshall contribute to the U.S. government system of checks and balances?
- A. by establishing the Supreme Court's power to check Congress
- B. by creating the power to remove the president from office
- C. by expanding the president's power to check Congress
- D. by giving the Supreme Court the power to control itself
Correct Answer & Rationale
Correct Answer: A
Chief Justice Marshall played a pivotal role in defining the Supreme Court's authority, notably through the landmark case Marbury v. Madison, which established the principle of judicial review. This empowered the Court to invalidate laws passed by Congress that it deemed unconstitutional, effectively allowing it to check legislative power. Option B is incorrect as the power to remove a president lies with Congress through impeachment, not the Supreme Court. Option C misrepresents Marshall's contributions, as he did not expand presidential power but rather clarified judicial authority. Option D is also inaccurate; the Supreme Court does not have self-regulating powers but operates within the framework of checks and balances.
Chief Justice Marshall played a pivotal role in defining the Supreme Court's authority, notably through the landmark case Marbury v. Madison, which established the principle of judicial review. This empowered the Court to invalidate laws passed by Congress that it deemed unconstitutional, effectively allowing it to check legislative power. Option B is incorrect as the power to remove a president lies with Congress through impeachment, not the Supreme Court. Option C misrepresents Marshall's contributions, as he did not expand presidential power but rather clarified judicial authority. Option D is also inaccurate; the Supreme Court does not have self-regulating powers but operates within the framework of checks and balances.
According to the information in the first graph, which statement correctly describes the period from 2006 to 2008?
- A. Gross farm income continued the decline that had characterized previous years.
- B. Gross farm income increased despite increases in production costs.
- C. Increases in production costs caused gross farm income to decline.
- D. Decreases in production costs continued throughout this period.
Correct Answer & Rationale
Correct Answer: B
During the period from 2006 to 2008, gross farm income saw an increase, even as production costs rose. This indicates that farmers managed to offset higher expenses with increased revenue. Option A is incorrect as it suggests a continuation of decline, which contradicts the data showing growth in income. Option C misinterprets the relationship between rising costs and income, as income actually increased despite those costs. Option D is inaccurate because it implies a consistent decrease in production costs, which is not supported by the graph indicating rising expenses during this timeframe.
During the period from 2006 to 2008, gross farm income saw an increase, even as production costs rose. This indicates that farmers managed to offset higher expenses with increased revenue. Option A is incorrect as it suggests a continuation of decline, which contradicts the data showing growth in income. Option C misinterprets the relationship between rising costs and income, as income actually increased despite those costs. Option D is inaccurate because it implies a consistent decrease in production costs, which is not supported by the graph indicating rising expenses during this timeframe.