Question

If the statement above concerning oil-supply disruptions is true, which of the following policies in an open-market nation is most likely to reduce the long-term economic impact on that nation of sharp and unexpected increases in international oil prices?

• A. Maintaining the quantity of oil imported at constant yearly levels
• B. Increasing the number of oil tankers in its fleet
• C. Suspending diplomatic relations with major oil-producing nations
• D. Decreasing oil consumption through conservation
• E. Decreasing domestic production of oil

Answer 1

The correct option is D Decreasing oil consumption through conservation

Option: (d)
Author clearly points out that import would not impact the rise of prices. It indicates that whether the oil is manufactured in the country itself or is bought from outsode doesn't matter. All the other choices get eliminated here.