How important was oil to Iran's economy?

• A. Oil accounted for 50% of imports and 30% of the budget
• B. Oil accounted for 20% of imports and 10% of the budget
• C. Oil accounted for 90% of imports and 80% of the annual budget
• D. Oil accounted for 25% of imports and 60% of the budget

Answer: (C)

Oil's central role in Iran's economy is the key idea. For much of the modern era, oil revenues financed the government and shaped what the country could import and spend. The statement that oil accounted for a very large share of both imports and the annual budget best reflects how dependent Iran was on oil: government spending and the ability to pay for goods from abroad were largely funded by oil profits, tying the whole economy to oil markets. This level of dependence helped explain why oil price shocks could have wide-reaching effects on Iran’s economy and policy decisions.

Other figures would suggest only a modest role for oil, which doesn't align with Iran's history of heavy reliance on oil income to fund government activities and imports.