The Fact That New Methods to Extract Oil Are Developed

question 1

Multiple Choice

The fact that new methods to extract oil are developed as oil prices increase suggests

• A) nothing; changes in technology occur regardless of market prices.
• B) that invention does respond to economic signals and is endogenous.
• C) that methods of production do not change in response to factor- price changes.
• D) that invention is exogenous.
• E) that oil has many close substitutes.

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Definitions:

Economic Freedom

The condition in which individuals have the ability to make their own economic decisions, including what to produce, consume, and exchange.

William Easterly

An American economist, specializing in economic development and a critique of international aid.

Centralization

The process of concentrating control and authority into a central organization or location.

Western Homogeneity

The perception or belief in a shared and uniform set of cultural characteristics, values, and practices across Western nations, overlooking regional and individual diversity.