a) Earlier this year politicians from both parties were discussing whether there should be a gas tax holiday.The idea was that eliminating the gas tax for a few months would help households better cope with inflation.North Carolina and federal gas taxes combined amount to 57 cents per gallon.Suppose the current price of gasoline paid by consumers is $3.57 per gallon and the gas tax is suspended indefinitely.An advisor to the governor thinks this will drop the price of gas paid by consumers to $3.00 per gallon.Do you think the advisor is correct?Why or why not?

b) True/False/Uncertain: "Price supports for dairy products guarantee dairy farmers a dependable stream of income. Consumers also benefit because they are guaranteed a dependable supply." Explain your answer.

c) True/False/Uncertain: "Although economists think that there is rarely a sound justification for any type of import restriction, they think that tariffs are always preferred over import quotas." Explain your answer.