When OPEC Nearly Tripled the Price of Oil in Late

question 65

Multiple Choice

When OPEC nearly tripled the price of oil in late 1973,

• A)U.S.real GDP increased as profits by oil producers increased.
• B)U.S.real GDP did not change although the price level rose.
• C)the U.S.price level fell because production became too expensive.
• D)the U.S.price level rose and real GDP decreased.
• E)both U.S.real GDP and the price level increased.

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Definitions:

2/10

A common trade credit term indicating a 2% discount if payment is made within 10 days; otherwise, the full amount is due in 30 days.

Net 30 Day Credit

A payment term indicating that the full payment is due within 30 days from the invoice date.

External Financing

External financing involves acquiring capital from outside sources to fund business operations and investments, such as through loans, issuing equity, or other forms of financial support from outside the company.

Total Production Costs

The combined costs of materials, labor, and overhead incurred in producing goods.