Question

Economics is the study of how societies, governments, businesses, households, and individuals allocate their scarce resources. Our discipline has two important features. First, we develop conceptual models of behavior to predict responses to changes in policy and market conditions. Second, we use rigorous statistical analysis to investigate these changes.

To understand better the economy, choose any economic article from an online business sourcesuch as newspaper, magazine, TV, and so on. Read the article very carefully and write a summary to explain:

Required ( In your own words and - Computerized ( In Word Format)

• What the article is talking about.
• What are the main points that the author discussed?
• Briefly, explain each point discussed.
• Finally, write a paragraph to argue your opinion.

Answer 1

Hello,

For this question, I've picked an article by the Institute for Energy Research, titled 'Oil and Energy Security: Another Market Failure.'

Summary
The article talks about the news that the oil and energy securities are facing market failure, and goes on to disprove it. The USA's dependency on oil imports has declined due to an increase in production, leading to a cushion for the market in case main suppliers interrupt the current flow.

Statements and their explanation
The article first talks about how an increase in oil prices has given the US economy an edge over the market. It mentions the doubling of domestic oil production and quotes a few articles that support this statement. The article mentions how the Wall Street Journal poked fun at oil-drillers a few years ago and agreed with Obama when he called the whole business a "gimmick, not a strategy." However, the Journal also credited the US institutional framework for increase in domestic oil supply, maintaining that this feat would've been difficult without private funding. The article goes on to name a few authors who are part of the so-called "intellectual elite" who advocate against the government. It also emphasizes on the need to trust the market. Overall, the article bears a critical tone against economists who calculated projected oil prices and supported government involvement. The article seems to agree that self-interested market-participants seem to know best.

Opinion and Argument:
While it is true that market-watchers can predict short-term trends with a high degree of accuracy, it is important to understand that economists understand long term market growth and it's consequences and implications. People should pay more heed to their warnings and invest in renewable energy rather than riding on the momentary high caused due to soaring domestic oil supply, which might be here for a temporary period.

Hope this helped!