The Inflation Associated with the Oil Price Shocks in the 1970s

question 54

Multiple Choice

The inflation associated with the oil price shocks in the 1970s after OPEC restricted the supply of oil is an example of

• A) cost-push inflation due to a supply shock.
• B) cost-push inflation due to a demand shock.
• C) demand-pull inflation due to a demand shock.
• D) demand-pull inflation due to a supply shock.

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Definitions:

Abnormal Spoilage

Waste or loss in production that exceeds the expected level of spoilage under normal operating conditions.

Private

Pertaining to or owned by an individual or entity not related to the government or public sector.

Product Costing

The process of determining the total cost involved in producing a product, including raw material, labor, and overhead costs.

Environmental Management Accounting

The collection, analysis, and use of financial and non-financial information to support corporate environmental management activities.