Recall the Application About Oil Price Fluctuations in the U

question 25

Multiple Choice

Recall the Application about oil price fluctuations in the U.S. economy to answer the following
question(s) . During the 1970s, the world economy was hit with a series of supply shocks which impacted
the prices of oil and many agricultural commodities. Since the United States is a net importer of oil, the
changes in oil prices also had an impact on aggregate demand. During the 1990s, the world economy
experienced favorable supply shocks in the oil market, but in 2008, world oil prices skyrocketed to $145 a
barrel before falling again in 2009 and 2010.
-According to this Application, between 1997 and 1998, supply shocks had what simultaneous effect in the oil market?

• A)an increase in output and an increase in prices
• B)an increase in output and a decrease in prices
• C)a decrease in output and an increase in prices
• D)a decrease in output and a decrease in prices

Understand the concept of functional divisions within organizations and their impacts on performance evaluation.

Identify strategies for mitigating budget gaming in performance compensation.

Comprehend the role of incentives in organizational performance and structure.

Understand the implications of organizational division on employee and division performance.

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Definitions:

International System

A global framework consisting of political, economic, social, and legal rules that govern the relations between nations.

Exchange Rates

The rate at which one currency can be converted into another.

Bretton Woods

Bretton Woods refers to the 1944 international agreement that established fixed foreign exchange rates for major currencies, thereby creating a framework for international trade and financial relations.

World War II

A worldwide war that occurred between 1939 and 1945, engaging the majority of the world's countries, including all major powers, which eventually split into two conflicting military coalitions: the Axis and the Allies.