Which statement best describes the Texas economy in the 1970s?

Question

• Texas experienced a boom as a result of its diversified economy.
• Texas experienced a boom when an OPEC embargo caused the cost of oil to increase.
• Texas experienced a bust when the overproduction of oil led to a decline in prices.
• Texas experienced a bust when declining oil prices led to real estate and banking losses.

Answer 1

The statement that best describes the Texas economy in the 1970s is "Texas experienced a boom when an OPEC embargo caused the cost of oil to increase." The OPEC embargo of 1973 led to a significant increase in the price of oil, and since Texas was a major oil-producing state, it experienced a boom in its economy as a result.