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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. The economist E. F. Schumacher called for what?
(a) Alternatives to high-cost coal
(b) A dependence on Arab oil
(c) A short-term view of the world's energy needs
(d) Continued use of a finite resource

2. The prices of oil did what between 1970 and 1973?
(a) Doubled
(b) Fell sharply
(c) Remained the same
(d) Decreased by 10 percent

3. In 1979, Iran produced what percent of the world's oil?
(a) 33-35%
(b) 4-5%
(c) 51-52%
(d) 15-17%

4. From 1985 to 1990, who was the world's largest purchaser of conventional arms?
(a) China
(b) Russia
(c) Iraq
(d) The United States

5. After Iraq expelled Khomeini, where did he go?
(a) Paris
(b) Moscow
(c) Cape Town
(d) Dallas

Short Answer Questions

1. What accelerated the American escape to the suburbs?

2. Who called for a "new concept" that would base the price of oil on the cost of alternative energy sources?

3. Who used radio to mobilize Arab nationalism and stir up the whole Third World?

4. In the late 1970s, oil buyers did what?

5. Who undercut Middle Eastern oil?

Short Essay Questions

1. Why did Iraqi troops invade Kuwait? What was the result?

2. Who was "Sheikh" Ahmed Zaki Yamani? What impact did he have on the oil industry?

3. What was at the heart of the Arab oil embargo? How did other countries feel about the issues?

4. What factors weakened OPEC's position in the mid-1980s?

5. What actions did Sadat take toward Israel? What was his goal?

6. How did Britain respond to Nassar's demands about the Canal? How did Eisenhower feel about the events?

7. What weakened OPEC's position in the oil industry? Give at least one specific example.

8. Who was Ayatollah Ruhollah Khomeini? What impact did he have on the oil industry?

9. What events and situations led to tensions between the U.S. and Britain?

10. Rising prices had what effect on the oil industry? Where did oil companies begin exploring?

(see the answer keys)

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