Use the Information for the Question(s) Below

question 102

Multiple Choice

Use the information for the question(s) below. As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Another oil refiner is offering to trade you 10,150 bbl of Alaska North Slope (ANS) crude oil for 10,000 bbl of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000 bbl of WTI crude, what should you do?

• A) Sell 10,000 bbl WTI crude on the market and use the proceeds to purchase and refine ANS crude.
• B) Do nothing; refine the 10,000 bbl of WTI crude.
• C) Trade the 10,000 bbl WTI crude with the other refiner and refine the 10,150 bbl of ANS crude.
• D) Trade the 10,000 bbl WTI crude with the other refiner and then sell the 10,150 bbl of ANS crude.

---

Definitions:

Advocates

Individuals or groups that actively support or defend a cause, policy, or individual’s rights.

Psychic Energy

In psychoanalytic theory, the energy that allows the psychological system to function; also called libido.

Unconscious Mind

A part of the mind that is inaccessible to the conscious mind but that affects behaviors and emotions.

Psychoanalytic Approach

The theoretical view of personality, based on the writings of Sigmund Freud, that emphasizes the unconscious processes of the mind.