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:

Payroll Tax

Charges implemented on employers or their workforce, typically based on a proportion of the salaries paid to employees.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Richest Households

The segment of the population that possesses the highest net worth or income compared to all other households.

Federal Personal Income Tax

Federal Personal Income Tax is a tax levied by the federal government on the annual income of individuals.