The Price of Crude Oil Rose to Over $100 Per

question 117

Multiple Choice

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

• A)The supply of plastic will increase.
• B)The supply of plastic will decrease.
• C)The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels.
• D)The supply of plastic will stay the same because of the profit motives of plastic producers.

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Definitions:

Life Insurance Companies

Financial institutions that provide policies to individuals, offering a sum of money to designated beneficiaries upon the policyholder's death in exchange for premiums paid during the policyholder’s lifetime.

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Financial programs that accumulate resources during an employee's working years and pay out retirement benefits upon reaching retirement age.

Short-term Securities

Financial instruments, such as bonds or Treasury bills, that mature or are redeemable within a short period, typically less than one year.

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Financial instruments that have a maturity period exceeding one year and include bonds, debentures, and other investment vehicles.