In a Graph of the History of U

question 64

Multiple Choice

In a graph of the history of U.S. energy use since 1950, why does the graph drop sharply after 1973?

• A) The Texas oil fields produced far less oil beginning in 1973, resulting in rationing and a switch to natural gas.
• B) Analysts have not yet found a good explanation for this drop in U.S. energy use.
• C) The 1973 mideast oil embargo was followed by increased prices and a drop in consumption.
• D) The Texas oil fields produced far less oil beginning in 1973, causing a price increase and a drop in consumption.
• E) The 1973 mideast oil embargo was followed by gasoline rationing and a switch to domestic natural gas.

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Definitions:

Inverted U-Theory

A hypothesis that suggests a relationship between any given variable and a factor of interest initially increases, reaches an optimal level, then declines.

R&D Expenditures

Refers to spending on research and development activities by governments, businesses, or other organizations to innovate or improve products and services.

Economies of Scale

The economic benefits companies achieve through expanding their scale of activity, as the cost for every unit of output falls with the growth in scale.

Income

The financial earnings received by an individual or entity, typically measured over a certain period of time.