When There Is a Recession, the Price of Oil Tends

question 97

Multiple Choice

When there is a recession, the price of oil tends to fall because:

• A) people drive more during recessions while looking for employment.
• B) the supply of oil increases during a recession, due to technological change.
• C) the prices of substitutes for oil rise during recessions.
• D) incomes fall during a recession, and oil is a normal good.

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Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Study Abroad

An educational program that allows students to live in a foreign country and attend a foreign educational institution for a certain period.

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Financial or non-financial rewards offered to encourage specific behaviors or outcomes, often used to motivate individuals or businesses to perform optimally.

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A financial charge or levy imposed by a state government on income, property, or sales.