Answer each question separately If the countries that export oil (OPEC) to the r
ID: 1163309 • Letter: A
Question
Answer each question separately
If the countries that export oil (OPEC) to the rest of the world decide to increase the price per barrel of oil, explain what impact the increase will have on the price level of the following
The maritime and terrestrial transportation of products
Consumer goods and services
The electric energy
Explain how a severe drought in a country, whose main activity is agriculture, can affect
The gross domestic product of that country
The unemployment rate
The price index of agricultural products
Explanation / Answer
The price of maritime and terrestrial transportation of products will increase as oil is its fuel and increase in the price of oil would increase its price to.
The price of consumer goods and services will also increase because supply of these needs transport and eventually the fuel which is oil
The price of electric energy would stay the same.
The GDP would be adversely affected as its primary economic source of income that is agriculture will suffer due to drought.
The unemployment will rise drastically as the economy is agriculture based and drought would make production of crops nearly impossible.
The price index of agriculture products would rise immensely due to nearly no production and extremely low supply.
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