What filling up really costs.

• Position: GRAPH * NATIONAL - Brief article

As the article on energy reports, soaring oil prices--topping $145 a barrel over the summer--have taken a toll on the U.S. economy. As a result, gas prices rose above $4 per gallon in many parts of the U.S., and look to be heading toward $5, and maybe $6, a gallon.

Despite the understandable howls of pain at the pump, Americans actually paid almost as much for gas before: In real terms--i.e., taking inflation into account--gas cost about the same in the Late 1970s and early 1980s as it does now. Earlier this year, however, the record-high real. prices of that period were eclipsed.

[GRAPHIC OMITTED]

ANALYZE THE GRAPH

(1) In how many of the years shown was the rear price of gas at least $2.50 a gallon?

a 4

b 7

c 10

d 12

(2) Which period saw the greatest change in the price at the pump?

a 1970-1979

b 1980-1989

c 1990-1999

d 2000-2008

(3) Gas prices in the U.S. rose--around the time of the first war with Iraq (1990-91).

a slightly

b in no way

c significantly

d permanently

(4) In what year was the difference between the nominal price and the rear price of gas the greatest?

a 1970

b 1979

c 1980

d 1984

(5) Take the average of the highest and lowest real prices on the graph. That figure is closest to the real price in:

a 1973

b 1984

c 1990

d 2004

Discussion Questions

1. What prices, besides gas, are affected by...