Based on the chart, what would most likely happen if the demand for oil decreased after 1990?
A. The government would go bankrupt.
B. Government revenue would decline.
C. The government would seek foreign loans.
D. Government revenue would double.
Answer (2)
The government heavily relied on oil revenue in 1990 (97.24%).
A decrease in oil demand would directly lead to a decrease in oil revenue.
The most likely consequence is a decline in overall government revenue.
Therefore, the answer is that government revenue would decline. $\boxed{Government revenue would decline.}
Explanation
Understanding the Problem The table shows the percentage of total government revenue derived from oil between 1967 and 1990. In 1990, a staggering 97.24% of the government's revenue came from oil. The question asks us to predict what would likely happen if the demand for oil decreased after 1990.
Analyzing the Impact of Decreased Oil Demand If the demand for oil decreases, the government's revenue from oil would also decrease. Since the government relied heavily on oil revenue in 1990, a decrease in oil demand would significantly impact the total government revenue.
Evaluating the Options Let's evaluate the given options:
The government would go bankrupt: This is a possible, but extreme, outcome. It depends on how drastically the demand decreases and whether the government can find alternative sources of revenue.
Government revenue would decline: This is the most likely outcome. If oil demand decreases, revenue from oil decreases, leading to an overall decline in government revenue.
The government would seek foreign loans: This is another possible outcome, especially if the decline in revenue is significant and the government needs to cover its expenses.
Government revenue would double: This is highly unlikely, as it contradicts the premise of decreased oil demand.
Determining the Most Likely Outcome Given the high dependence on oil revenue in 1990, the most direct and likely consequence of a decrease in oil demand would be a decline in government revenue.
Conclusion Therefore, the most likely outcome is that government revenue would decline.
Examples
Imagine a country heavily reliant on exporting a single agricultural product, like coffee. If a disease suddenly wipes out a large portion of the coffee crop, the country's income would significantly decrease. Similarly, if a country depends heavily on oil revenue and the demand for oil decreases, the government's income will likely decline, potentially affecting public services and the economy.
The most likely outcome of a decrease in oil demand after 1990 is that government revenue would decline due to its heavy reliance on oil for funding. Lower demand for oil results in reduced oil prices and sales, directly impacting revenue. Therefore, the correct answer is that government revenue would decline.
;
