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
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.
Which statement can be made based on both the passage and the table?
- A. The increase in independent voters has strengthened the influence of Democrats on the national level.
- B. The best political campaigns of Republicans and Democrats use modern media to communicate with voters.
- C. The most recent data shows that Republicans controlled almost three times the number of state legislatures as Democrats.
- D. The decrease in party identification has strengthened the influence of Republicans in state legislatures.
Correct Answer & Rationale
Correct Answer: B
Option B accurately reflects the information provided in both the passage and the table, highlighting the importance of modern media in effective political campaigns for both major parties. This statement emphasizes a shared strategy that transcends partisan lines, indicating a common approach to engaging voters. Option A incorrectly suggests a direct correlation between independent voters and the strengthening of Democrats, which is not supported by the data. Option C misrepresents the statistics regarding state legislature control, as the table likely shows a different ratio. Option D assumes that a decrease in party identification universally benefits Republicans, ignoring the complexities of voter behavior and preferences that the passage may address.
Option B accurately reflects the information provided in both the passage and the table, highlighting the importance of modern media in effective political campaigns for both major parties. This statement emphasizes a shared strategy that transcends partisan lines, indicating a common approach to engaging voters. Option A incorrectly suggests a direct correlation between independent voters and the strengthening of Democrats, which is not supported by the data. Option C misrepresents the statistics regarding state legislature control, as the table likely shows a different ratio. Option D assumes that a decrease in party identification universally benefits Republicans, ignoring the complexities of voter behavior and preferences that the passage may address.
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.