Question

Question 13 (3 points)

Which best describes a challenge in the Middle East resulting from oil production?
Oil producing nations refuse to work together.
Consumption of oil by the rest of the world is falling.
Wealth produced by oil enriches powerful elites.
Most Middle Eastern nations have used up their oil reserves.

Answer 1

Wealth produced by oil enriches powerful elites.

Step-by-step explanation:

Wealth produced by oil enriches powerful elites.

One of the most severe issues arising from Middle Eastern oil production is the unequal distribution of wealth. The region's oil production has resulted in a small group of powerful elites controlling a large portion of the wealth while most of the population remains impoverished. Economic and political inequalities, corruption, and social unrest have resulted from this concentration of wealth.

The oil industry has also resulted in the development of a rentier economy, with oil exports serving as the government's primary source of revenue. This has resulted in a lack of economic diversification and a reliance on oil revenues. When oil prices fall, as recently, the government's income falls, causing economic insecurity and hardship for many people.

Furthermore, oil production can have negative environmental consequences, such as air and water pollution, and can contribute to climate change by emitting greenhouse gases. This can result in health issues and ecosystem damage, disproportionately affecting vulnerable populations.

Thus the concentration of wealth, economic reliance on oil, and environmental consequences are some challenges resulting from Middle Eastern oil production.