For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except ?
Correct answer: D. improving terms of trade
- A. balance of trade deficits
- B. price inflation
- C. constrained economic growth
- D. improving terms of trade
Explanation
Higher oil prices increase import bills, worsen trade balances, and raise production and consumer prices, while also restricting growth in oil-importing economies. They do not improve the terms of trade because imports become more expensive relative to exports.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Hong Kong and South Korea are examples of developing nations that have recently pursued ________ industrialization policies?
The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ?
Which of the following strategies have developing countries not used to deal with the problem of unstable export markets ?
A widely used indicator to differentiate developed countries from developing countries is ?
Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?
Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?