An Expected Increase in the Market Price of Oil in the Coming

question 103

Multiple Choice

An expected increase in the market price of oil in the coming year is likely to ________ in the current year.

• A) shift the supply curve of oil to the left
• B) shift the supply curve of oil to the right
• C) shift the demand curve for oil to the left
• D) cause no changes in the demand and supply curves of oil

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.

Disaster Relief Funds

Financial assistance provided to individuals, businesses, and communities affected by natural or human-made disasters.

Flood-Prone Areas

Regions that are highly susceptible to flooding due to their geographical features, environmental conditions, or proximity to bodies of water.

Depositor Moral Hazard

A situation in financial systems where depositors engage in riskier behaviors because they know their deposits are protected, for instance, by government insurance.