Question

15 multiple choice 2 points if there were a decrease in the worldwide production of oil, which of the following would most likely occur? global consumption of oil would increase. economic growth in oil - importing countries would decrease. international spending on research into alternative energy sources would decrease. global exploration for new oil reserves would decrease.

Explanation:

• When there is a decrease in worldwide oil production, oil - importing countries rely on oil for various economic activities like transportation, manufacturing (which uses oil - based energy or oil - derived raw materials). A shortage of oil (due to decreased production) will lead to higher oil prices. Higher oil prices increase production costs for many industries (e.g., shipping costs go up as fuel is more expensive, manufacturing costs increase if they use oil - powered machinery). This will slow down economic growth in oil - importing countries.
• Global consumption of oil is more likely to decrease (due to higher prices and scarcity) rather than increase. International spending on alternative energy research is likely to increase as countries look for substitutes. Global exploration for new oil reserves is likely to increase as countries try to secure more oil supplies.

Answer:

Economic growth in oil - importing countries would decrease.