Question

How would the economies of Saudi Arabia and Iraq be affected if people in other countries stopped using as much oil as they do today?%0D%0A%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0ATheir economies would suffer as the price of oil went up and their profits went down.%0D%0A%0D%0ATheir economies would suffer as the price of oil went up and their profits went down.%0D%0A%0D%0ATheir economies would improve as the price of oil rose and jobs in the oil industry were created.%0D%0A%0D%0ATheir economies would improve as the price of oil rose and jobs in the oil industry were created.%0D%0A%0D%0ATheir economies would suffer as other countries bought less of the oil that Saudi Arabia and Iraq produce.%0D%0A%0D%0ATheir economies would suffer as other countries bought less of the oil that Saudi Arabia and Iraq produce.%0D%0A%0D%0ATheir economies would not be seriously affected because they are very diverse.

Answer 1

Their economies would suffer as the price of oil went up and their profits went down. Since Saudi Arabia and Iraq are heavily dependent on oil exports for revenue, a decrease in demand for oil would lead to a decrease in profits, resulting in economic hardship for both countries. Additionally, a decline in oil prices could also lead to job losses in the oil industry, further impacting their economies.