A Reduction the Amount of Oil (A Resource) Will Tend

question 193

Multiple Choice

A reduction the amount of oil (a resource) will tend to cause which of the following?

• A) a reduction in output and a reduction in the price level
• B) a reduction in output with no change in the price level
• C) a reduction in output and an increase in the price level
• D) an increase in the price level and no change in output if accompanied by an increase in the money supply

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Definitions:

Consumption

The process through which goods and services are used up or utilized.

Short Run

In economics, a period during which at least one input, such as plant size, is fixed and cannot be changed.

Doomsday Forecasts

Predictions about catastrophic events that could potentially lead to worldwide devastation or the end of humanity.

Dire Consequences

Serious or catastrophic results that arise from a particular action or set of circumstances.