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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.
Miller and Wicks-Lim disagree. Explain why, referencing their arguments on a) the argument that high skill jobs aren’t the main type of employment available (use a statistic), What do the authors think is causing the current unemployment?
What is total savings in the nation as a percentage of GNP? What is the current account balance as a percentage of GNP? Is there a current account surplus or deficit?
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Calculat..
Recommend appropriate pricing and nonpricing strategies for your new or existing good or service based on the projected economy’s stage in the business cycle and the prevailing projected economic conditions for one or more macroeconomic factors. Expl..
Why do some economists believe the Fed needs to unwind monetary policies instituted during the recession? What is the risk in doing so?
What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How? How the government have responded to the crisis both in monetary policies ..
Discuss using an example what are public goods and why does it lead to a free rider problem. Why is fishing in the ocean, where there are no well-defined property rights, a concern regarding our ability to ensure sustainable use of our fishing stock?..
The marginal costs (ci) and marginal benefits (bi) of getting more education can vary across individuals – i.e., heterogeneous costs and benefits. Assume that marginal costs increase with the education level and marginal benefits decline with the edu..
The company's senior managers are reviewing the company's Annual Report, which will be presented at the next quarterly shareholder's meeting. The annual report includes the following risk statements:
Discuss the expenditure approach to measuring aggregate economic activity. Discuss the income approach to measuring aggregate economic activity. Are they equal? Does the value added method of measuring economics activity confirm this?
Identify and discuss some of the other factors that influenced the growth of social media. To get you started and pointed in the right direction, consider how the use of digital cameras, digital video cameras, cell phones with cameras, and portable d..
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
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