Oil Boom and Bust Unit 2 Lesson 14-
1.D- 90 percent
2.B- Rapid Price Changes
3.A-Overpruction leads to oversupply and then to a fall in prices
To answer these questions about the Oil Boom and Bust, we need to understand the topic first. The Oil Boom and Bust is a term used to describe the cycle of rapid growth and decline in the oil industry. This cycle is characterized by several factors, including the percentage of revenue generated by oil production, rapid price changes, and the effects of overproduction on supply and prices.
1. The question asks about the percentage of revenue generated by oil production during the boom period. To find the answer, we need to understand that the oil boom refers to a period of high oil prices and increased production. Typically, during a boom, oil production accounts for a significant portion of the overall revenue. Therefore, the correct answer is D, 90 percent, as oil production becomes a driving force behind the economy during this period.
2. The second question asks about one of the characteristics of the Oil Boom and Bust cycle. Rapid price changes are a common feature of this cycle. To answer this question, we can eliminate options that don't relate to price changes. Option A refers to overproduction, and option C is about geographic changes. However, option B, rapid price changes, aligns with the topic and is considered accurate.
3. The third question focuses on cause and effect within the Oil Boom and Bust cycle. Overproduction is a key factor that leads to oversupply, followed by a fall in prices. The correct answer to this question is A, as overproduction disrupts the supply-demand balance, leading to a surplus of oil. This oversupply then drives down prices, contributing to the bust phase of the cycle.
In summary, the correct answers to the questions are:
1. D - 90 percent.
2. B - Rapid price changes.
3. A - Overproduction leads to oversupply and then to a fall in prices.