Price gouging and windfall profits

Assignment Help Business Economics

Reference no: EM131448663

During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies. In the 1970s Congress imposed an “excess profits tax” on these companies. It did not do so this time? What does this change show about how our understanding of the way the price system works to allocate resources has evolved? If “excess profits” are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?

Reference no: EM131448663

Questions Cloud

Calculate the present value per share : The total assets of Rs 80,000 of a company are financed by equity funds only. The internal rate of return on assets is 10 per cent.

Related variables noise and intoxication : You know that if someone is drunk, then the probability of them being loud is .9. Use Bayes’s Rule to calculate P(drunk|loud).

Executives bear for the financial crisis : What share of the responsibility did Moody’s and its executives bear for the financial crisis.

Discuss the traits that make a successful leader : You will discuss the traits that make a successful leader and the leadership styles and functions you have read in your textbook.

Price gouging and windfall profits : During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies.

Events effects the location of country production : Explain how if at all each of the following events effects the location of a country’s production possibilities curve

Assume that demand for plastic surgery is price inelastic : Assume that the demand for plastic surgery is price inelastic. Are the following statements true or false?

Write a paper electronic surveillance and constitution : Write a research paper electronic surveillance and constitution. Identifying legal issues concerning electronic surveillance and the constitution.' The minimum word count for the paper must exceed 1500 words.

Which produces capital goods and consumer goods : Draw the probable 'production possibilities curve for an economy which produces 'Capital' goods and 'Consumer' goods.

User Account

All Pages