Structuralists Would Argue That the Current Low Price of Oil

question 23

Multiple Choice

Structuralists would argue that the current low price of oil is a result of

• A) an oversupply of oil and lower demand from consumers.
• B) increased efforts by EDCs to produce more of their own oil.
• C) manipulation of the market economy by oil produc­ers and capitalist consumers.
• D) economic sanctions placed on oil-producing coun­tries by the United States.

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Definitions:

Double Diminishing-Balance

A method of accelerated depreciation that doubles the standard depreciation rate.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Double Diminishing-Balance

A method of accelerated depreciation which calculates depreciation at twice the rate of the straight-line depreciation method on the remaining book value each year.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used.