OPEC's Oil Embargo of Canada in the 1970s Was an Example

question 28

Multiple Choice

OPEC's oil embargo of Canada in the 1970s was an example of

• A)a demand shock that increased price levels.
• B)a demand shock that decreased price levels.
• C)a supply shock that increased price levels.
• D)a supply shock that decreased price levels.

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Definitions:

Mixed Strategy

A strategic decision in game theory where players randomize their actions to keep opponents unsure of their intensions.

Equilibrium

A condition or state in which economic forces are balanced, resulting in a stable system where there is no incentive for change.

Maximin Strategies

Decision-making strategies that aim to maximize the minimum gain that can be achieved, often used in situations of uncertainty or competitive scenarios.

Equilibrium Outcome

A state in a game where all players have chosen their strategies and no participant can gain by unilaterally changing their own strategy.