Real GDP Level: Research current and historical levels of RGDP in the US. Use credible Internet or other sources

Real GDP Level: Research current and historical levels of RGDP in the US. Use credible Internet or other sources (e.g., government data, national newspapers) and CITE your source. Based on the data you found, what was the RGDP in the US in the most recent year you for which you could find data (in trillions of dollars)?

Solutions

Expert Solution

a) Low Oil Prices Are History's Greatest Case of Market Failure - The American Prospect (2nd December 2014)

(http://prospect.org/article/low-oil-prices-are-historys-greatest-case-market-failure)

b) The current oil prices are determined by the demand and suppy, it doesnot consider the external factors such as rising pollution, global climate change, rise in sea level and many more.This is a case of market failure because currently the oil proces are at it's lowest and the other enviornmental factors are deteriorating fast.

During the period 2007-2008, oil prices were at it's peak and there were talks that most probably the natural resources will finish and the world needs to find alternative resources. However, as Julian L. Simon predicted that high prices and technology would create substitutes, and prices will fall. Thus rather than investing on alternative energy the oil barrons invested on technology which allowed more sophisticated exploration of carbon fuels, which resulted in falling oil prices.

Thus leaving the oil prices to be completely determined through the market forces ia a clear cut example of market failure.

c) The market failure is because of negative externalities. Yes, government interventions in terms of regulating the prices will be hepful - if the government included the cost of negative externalities in fuel prices then the fuel prices will increase -> this will lead to less consumption of fuel which means less pollution (and other externalities) along with less exploration -> the extra money which is charged for the negative externalities can be used for R&D to help come up with cheaper alternative fuels -> which in the longrun will automatically reduce the negative externalities as pollution, climate change etc

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

RGDP Growth in US: Research data on the recent growth rate of RGDP in the US. Again, please CITE your credible data source.

RGDP Growth in US: Research data on the recent growth rate of RGDP in the US. Again, please CITE your credible data source. What is the latest RGDP growth rate? RGDP per Capita: Research data on recent RGDP per capita in the US and other countries. CITE your source. Name some countries that have higher RGDP per capita than the US. Characterize Economic Growth: What do you think is the best measure of economic growth? How would you characterize...

Research the Internet (using credible sources). How does SARS-CoV-2 attack our respiratory system?

For at least five of these uses of computer networking, use the Internet or other sources...

For at least five of these uses of computer networking, use the Internet or other sources to identify the market-leading software applications used to obtain the required functionality (for example, to serve web pages, the market-leading software is the Apache web server). In a table, provide the following information for the five uses: the application (use) category, the market-leading software application in the category, and a paragraph or two about the strengths of the selected software application. (You can use...

Real GDP per capita tells us the average level of income (and expenditure) for a person...

Real GDP per capita tells us the average level of income (and expenditure) for a person in the economy. While countries with higher levels of GDP per capita tend to enjoy better healthcare, higher levels of life expectancy or higher average years of schooling (to mention a few), compared to countries with low levels of real GDP per capita, many still argue that this is an imperfect measure of the true level of well-being for members of an economy. Explain...

Using internet and other resources, research a current theory of causes of SIDS To what extent...

Using internet and other resources, research a current theory of causes of SIDS To what extent is there a single "cause" of SIDS? Alternatively, consider the proposition that SIDS is merely a term of convenience used by pathologists when they are unable to determine the cause and that the term "unascertained" is a preferable, and more honest, approach.

•Use the Internet to research a business failure determine the level of responsibility management had for...

•Use the Internet to research a business failure determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response. •Create a list of three best practices that not only would have helped the company you researched from failure, but would also apply to the rest of the industry your company was part of. Explain your rationale for selecting these best practices.

b) Due to severe negative demand shock, US real GDP plummeted from is potential level of...

b) Due to severe negative demand shock, US real GDP plummeted from is potential level of $900 billion to $800 billion, so the economy is new in a recession. Suppose the government plans to use expansionary fiscal polices to get the economy out of the recession. i. Suppose the government wants to cut taxes. Obtain the tax multiplier, and determaine how much of tax cut would be needed. ii. Suppose the government wants to increase government spending multiplier, and determine how...

a) Use the internet, library, or other information source to research imports and exports for any...

a) Use the internet, library, or other information source to research imports and exports for any state or country in the world. Pick a country or state and discuss its import goods and export goods. You should include some dollar values or % of GDP figures b) For the country you choose, discuss some possible sources of comparative advantage for that economy.

Use the table and graph to answer three questions. Real GDP (in $ Trillions) Price Level...

Use the table and graph to answer three questions. Real GDP (in $ Trillions) Price Level Supplied Demanded 100 4 16 110 10 15 140 14 12 200 15 6 Using the table and graph answer the questions a. What is the equilibrium price level? b. What is the equilibrium output? c. If the quantity of output demanded at ever price level increases by $2 trillion, what happens to equilibrium output and prices?

Which of the following, other things the same, would make the price level decrease and real GDP increase?

Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. aggregate demand shifts left c. aggregate demand shifts right d. long-run aggregate supply shifts left

Subjects