Georgia Assessments for the Certification of Educators GACE Practice Test

Which of the following is NOT typically cited as a potential cause of oil price increases?

1. Increased global demand for oil

2. Insufficient refinery capacity

3. Price increases for consumer goods and services in the U.S.

4. Speculation in the oil market

The correct answer is: Increased global demand for oil

Increased global demand for oil is a well-recognized factor that typically leads to oil price increases, so this option is actually indicative of a common cause of rising prices rather than a cause that would not typically be cited. Factors like insufficient refinery capacity and speculation in the oil market are also frequently mentioned as causes for price increases. Insufficient capacity can limit the supply of processed oil products, leading to higher prices. Speculation involves investors buying oil futures with expectations of higher prices in the future, which can drive prices up in the present. On the other hand, price increases for consumer goods and services in the U.S. do not directly relate to the production or availability of oil itself. While higher oil prices might impact consumer goods due to increased transportation costs, the relationship is more of an effect rather than a direct cause of oil price increases. Thus, this option does not fit the pattern of typical causes for rising oil prices.