Which of the Following Would Be the Most Likely Effect

question 21

Multiple Choice

Which of the following would be the most likely effect of an increase in the world price of oil that would create a sectoral shift?

• A)There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without.
• B)There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without.
• C)There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without.
• D)There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without.

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