When Oil Prices Increased to Record Levels in the 1970s

question 151

Multiple Choice

When oil prices increased to record levels in the 1970s, salaries dramatically increased for petroleum geologists skilled in finding oil. Those geologists who moved from other areas to the higher paying jobs were

• A) seeking to profit from society's needs rather than following the guidance of the invisible hand, which would have led them to seek jobs serving society rather than jobs with higher pay.
• B) following the guidance of the invisible hand and probably serving society's best interests as well as their own.
• C) causing oil prices to rise even more by moving to jobs with higher salaries.
• D) helping themselves but hurting the economy.

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Definitions:

Second-Highest Bidder

In auctions, the participant who places the second greatest bid, often relevant in contexts where the winner pays the price submitted by this bidder.

Second-Price Auction

A bidding process where the highest bidder wins but pays the price bid by the second-highest bidder.

True Values

The accurate or real values of variables or quantities, devoid of any bias or error.

Selling Price

The amount of money charged for a product or service, which may include costs, profit margins, and taxes.