passwella.
Menu

JAMB Economics 1983 Question 31

Question 31

Natural Resources and Petroleum

Petroleum 'glut' in international trade means

  1. A.a fall in petroleum production
  2. B.an over supply of petroleum
  3. C.a higher petroleum price offered by the buyer
  4. D.a higher petroleum price demanded by the seller
  5. E.higher prices for the consumption of petroleum.
Show the answer and explanation

Answer: B (an over supply of petroleum)

Explanation

A glut is a situation where supply is far greater than demand, as happened to oil in the early 1980s, pushing prices down.