A few years ago, as oil and gas prices continued to increase, a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil
Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not?
It would be foolish for the United States to try to become totally self-reliant in oil production. There is a reason that approximately 40 percent of our oil comes from OPEC nations: Middle-Eastern countries can produce oil at a far lower opportunity cost than U.S. producers. In the Middle East the vast reserves of oil, combined with more lax regulations imposed by the government, have combined to drive down the per barrel opportunity cost of oil extraction to very low levels. Hence the United States gains from trade with these nations. Even though the price of oil was higher than in the past, that price was much less than what would be the opportunity cost of producing enough oil domestically so that the United States was totally self-reliant.
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The per-worker production function has a ________ slope, indicating that increases in capital per hour worked ________ real GDP
A) positive; decrease B) negative; decrease C) positive; increase D) negative; increase
Refer to the above graph. Assume that in long-run equilibrium a purely competitive firm has the same cost curves as that of the monopolistically competitive firm shown. It can be concluded that the:
A. purely competitive producer would produce less at a higher ATC. B. monopolistically competitive producer would produce less at a higher ATC. C. purely competitive firm would have lower economic profits. D. purely competitive firm would have higher economic profits.
Which of the following is a result of unemployment that is very low?
a. the few people who are unemployed stop looking for jobs b. wages drop below the level of minimum wage c. companies have difficulties recruiting workers d. companies stop looking for people to fill unfilled jobs
Which of the following is an act of economic "investment"?
A. A brewer purchases a new fermentation system for his beer. B. An entrepreneur buys 5,000 shares of stock at $5 a share and then sells the stock at a profit for $60 a share. C. A teacher deposits $500 in a retirement account. D. The state legislature authorizes the sale of a state park.