Since Improved Technology Continually Lowers the Cost of Discovering and Producing

question 186

Multiple Choice

Since improved technology continually lowers the cost of discovering and producing oil, how can rising oil prices in recent years be explained?

• A) This is evidence against the supply and demand model.
• B) Demand has increased by more than supply increased, raising prices.
• C) Prices always rise when supply shifts down and to the right.
• D) Oil is one of the few commodities that do not follow the supply and demand model.

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Definitions:

Psychodynamic Theory

A psychological perspective that emphasizes unconscious psychological processes (e.g., wishes, fears, and desires) and contends that childhood experiences are crucial in shaping adult personality.

Oedipus Complex

A psychoanalytic concept describing a child's feelings of desire for the opposite-sex parent and jealousy towards the same-sex parent.

Electra Complex

A Freudian concept involving a girl's psychosexual competition with her mother for possession of her father, seen as a counterpart to the Oedipus complex in boys.

Analytical Psychology

The study of the personal and collective unconscious developed by Carl Jung.