Southwest Asia - Economics of Oil Flashcards
1
Q
What is the most important resource in Southwest Asia after water?
A
Oil.
2
Q
Why is Oil so important?
A
Internal combustion engines became a very common engine.
3
Q
What sets the price of a Commodity?
A
Supply and demand.
4
Q
What is Processing?
A
Processing is the production of a material for its’ selling.
5
Q
What is needed for selling oil?
A
Oil pipes, oil refinery stations, oil pumps, and more.
6
Q
What is a Cartel?
A
A cartel is a group that tries to control a resource by maintaining high prices and resisting competition.
7
Q
Places where oil tanker routes converge are called ___.
A
Chock points.
8
Q
When producers combine to control prices, they form a ___.
A
Cartel.
9
Q
An international oil company can provide infrastructure, expertise and marketing but will also take ___.
A
Much of the profit.
