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Due to the global economic slowdown, we were benefiting from relatively low oil prices. But because of the instability of the Middle East and the slowing of the global economy we are seeing oil prices fall. But when the global economy fully recovers, you can expect the price of gas to keep rising.
One of the key principles of economics is the law of comparative advantage. In view the President Obama's hold on the Keystone Pipeline project and our memory of the oil spill in the Gulf of Mexico a few years ago, I want you to see yourself as an economic adviser to the U.S. Congress and the president, and in your initial opinion present your advice as to what they should do or not do. Support your argument with economic principles including the concept of comparative advantage. Noteworthy is the value of the dollar on the exchange markets. Oil is bought and sold globally in U.S. dollars; so all countries must buy dollars on the exchange markets to buy oil. Effectively, the value of the dollar to another nation’s currency could make oil more expensive or less expensive for that nation depending on the exchange rate when a purchase is made.
Why does the government have to regulate the pollution that is put into the environment? What type of externality is pollution and why is society not able to bring about equilibrium in markets?
What is the role o the cost of capital in the valuation process, and what is one of the primaries uses the cost of capital (meaning in what area of chance is the ost often applied)? Why is it important for financial managers to understand the cost of..
What are the credit risks faced by retail banking
44 g of dry ice (solid CO2) is put into a 2.0 L container andthe top is sealed. The dry ice turns to gas at roomtemperature (20*C). Find the pressure increase in the 2.0 Lcontainer. (one mole of CO2 has a mass of 44 g, R= 0.0821 L-atm/mol-K)
Increasing the government budgetary surplus or decreasing the deficit is desirable in a period of:
Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend.If he belonged to the club, he could buy good 2 ..
Consider the game of the battle of sexes. How would you modify the payoffs to (F,O) and (O,F) to reflect the following: Namely, the husband is unhappiest when he is at the opera by himself, he is a little happier when he is with his wife at the opera..
In 1975, President Ford proposed a $28 million cut in government spending and a $28 million tax cut, what is the result of the two actions on the economy? Show you work. Hint: notice that the numbers are the same - $28 million.
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and e..
A group of 20 doctors are considering forming a new medical group also has asked you to prepare a report on whether they should build a facility in an area.
You are an economic advisor to the government of China in 2008. The country has a current account surplus and is facing gathering inflationary pressures. China’s government would like to attract workers from the rural countryside into manufacturing e..
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
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