The following information is extracted from several articles2 about oil market. An intensifying oil price war between Saudi Arabia and Russia has created “very painful” market conditions for the world’s largest crude oil producers. International benchmark Brent crude traded at $32.97 Thursday, down almost 8%, while U.S. West Texas Intermediate (WTI) stood at $30.40, around 7.8% lower. Oil prices have almost halved since the start of the year. Last week, Saudi Arabia failed to secure Moscow’s support for deeper output cuts at a meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC plus. OPEC had proposed to deepen cuts by 1.5 million barrels per day and Russia was asked to cut an extra 300,000 bpd. “There was no point in cutting until after everyone understood how sharply demand could fall. We cannot fight a falling demand situation when there is no clarity about where the bottom (of demand) is,” Pavel Sorokin, the Russia’s deputy energy minister, said. “It is very easy to get caught in a circle when, by cutting once, you get into an even worse situation: oil prices would shortly bounce back before falling again as demand continued to fall.” Cooperation between two (Saudi Arabia and Russia) of the world’s three largest oil producers — the third is the United States — appears to be at an end. 2How a Saudi-Russian Standoff Sent Oil Markets Into a Frenzy. 9th March 2020. New York Times Russia to OPEC - deeper oil cuts won't work. 12th March 2020. Reuter The losers — and even bigger losers — of an oil price war between Saudi Arabia and Russia. 12th March 2020. CNBC

a) With aid of diagram, explain how the fall in crude oil demand affect the output of OPEC plus members.

b) Discuss why Russia refuse to follow Saudi Arabia’s proposal to cut crude oil production with aid of diagram.

Question 2: The following information is extracted from several articles2 about oil market.

An intensifying oil price war between Saudi Arabia and Russia has created “very painful” market conditions for the world’s largest crude oil producers. International benchmark Brent crude traded at $32.97 Thursday, down almost 8%, while U.S. West Texas Intermediate (WTI) stood at $30.40, around 7.8% lower. Oil prices have almost halved since the start of the year.

Last week, Saudi Arabia failed to secure Moscow’s support for deeper output cuts at a meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC plus. OPEC had proposed to deepen cuts by 1.5 million barrels per day and Russia was asked to cut an extra 300,000 bpd.

“There was no point in cutting until after everyone understood how sharply demand could fall. We cannot fight a falling demand situation when there is no clarity about where the bottom (of demand) is,” Pavel Sorokin, the Russia’s deputy energy minister, said.

“It is very easy to get caught in a circle when, by cutting once, you get into an even worse situation: oil prices would shortly bounce back before falling again as demand continued to fall.”

Cooperation between two (Saudi Arabia and Russia) of the world’s three largest oil producers — the third is the United States — appears to be at an end.

2How a Saudi-Russian Standoff Sent Oil Markets Into a Frenzy. 9th March 2020. New York Times Russia to OPEC - deeper oil cuts won't work. 12th March 2020. Reuter The losers — and even bigger losers — of an oil price war between Saudi Arabia and Russia. 12th March 2020. CNBC

a) With aid of diagram, explain how the fall in crude oil demand affect the output of OPEC plus members.

b) Discuss why Russia refuse to follow Saudi Arabia’s proposal to cut crude oil production with aid of diagram.

Case Study

Identifying Factors:

Carmen Matthews is a 41-year-old separated Hispanic mother of two children, ages 10 and 12. She works full-time as a real estate agent. She is referred by her counselor.

Chief Complaint:

“I am so worried all the time. I feel like I’m caught in a nightmare.”

History of Present Illness:

The patient reports increased anxiety since her husband abruptly left town with his secretary about 8 months ago. She complains of constant worrying about paying her bills because of a downturn in the real estate market that reduced her income. Three months ago, she began to have more difficulty falling asleep, reporting that it can take her as much as 2 to 3 hours because she can’t stop worrying about how to provide for her children and how she will ever keep up with her mortgage and auto payments.

She estimates her total sleep to be 4 hours a night. In addition to difficulty falling asleep, she complains of fatigue, impaired concentration, and muscle tension, which are having a detrimental effect on her performance at work She also complains of frequent headaches, which are not typical for her. She denies depressed mood or suicidal ideation, intent, and plan. She describes herself as a strong, positive person who has always been able to deal with her own problems, although she admits that she has always had a tendency to worry. She has no family in town and few close friends.

Current Medications:

None.

Substance Abuse:

Carmen denies use of alcohol, tobacco, and all other licit or illicit drugs. She drinks about 4 cups of tea a day.

what would be the patient’s psychiatric diagnosis using the DSM 5?

What additional information would have been helpful?

What would you include in a biopsychosocial treatment plan for the patient in addition to pharmacotherapy?

QUESTION 71

Most forms of cancer are caused by

QUESTION 72

Which description is the best definition of a stem cell?

QUESTION 73

Which biotech method requires the use of the reverse transcriptase enzyme?

QUESTION 74

In eukaryotes, RNA processing of a pre-mRNA to create a mature mRNA includes

QUESTION 75

Genomic imprinting is

QUESTION 76

When cells are exposed to DNA-damaging radiation (such as UV light), the p53 protein _______ the repair of the damaged DNA, and ________the transition from G1 to S phase to allow time for the DNA damage to be repaired.

QUESTION 77

Familial Down syndrome is a result of which of the following?

QUESTION 78

Eastern Europeans like to feast on smoked meats. Those first-generation Americans of Eastern European descent who adopt the North America diet have a much lower rate of stomach cancer than those who maintain their traditional old-country diet. This suggests that cancer is

QUESTION 79

Pericentric inversion occurs when a chromosomal segment is

QUESTION 80

The phenomenon in which a gene determines a trait only under certain environmental circumstances (for example, below a certain temperature) but not under other conditions, is described as

what is MTM1 and most analaysis

Question 1: We are dealing with the market for tobacco. Tobacco use is known to cause several diseases. It is also known to be highly addictive.

a) Draw a graph for the tobacco market using supply and demand curves. Find the equilibrium. Label the consumer surplus and the producer surplus. (Tip: Keep in mind that tobacco is extremely addictive. What would this imply for the demand curve?)

b) Tobacco use is one of the traditional examples of negative externalities. Can you show the most efficient allocation in this market through graphing?

c) Why is the allocation you showed above is the most efficient outcome? Explain by labeling the total surplus in both cases using two different graphs. Label the additional surplus we get with the efficient allocation, compared to the market allocation.  

Question 2: We continue dealing with the market in the first question.

d) One of the policy decisions we discussed in class to correct for these types of market failures is taxing. Now assume the government decided to correct the market above through taxing buyers of tobacco. Can you show how such a tax could correct for the market failure above and help us reach the optimum allocation?

e) Even though the tax is on the b-=paying the most?

f) Would you advise the government to use this policy? Is there a deadweight loss due to this tax? Is there a welfare gain? Show. (Tip: You actually graphed this somewhere above.)