Question 1
A technological change in the production of cars will
◦ affect only the markets for inputs used to produce cars.
◦ affect only the way cars are produced.
◦ have no effect on consumers.
◦ affect input and output markets in the automobile industry and other related industries.
Question 2
A gas tax holiday would
◦ affect the market for gasoline.
◦ affect the market for air travel.
◦ affect the level of congestion on roads.
◦ All of these are correct.
