Join Game Changers!

Apply Today and receive complimentary 6 month Premium subscription!
Quick Homework Help
Textbook
Instant Math
​
(down) 0 (up)

Is oil an economic problem? If so, why?
⚑ Flag

Wanda044

by Wanda044 at October 15, 2010

Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations, and what can government do, if anything?

Answers

(up) 0 (down)
i believe that it is because i dont think that oil is cheap and that we dont have a lot of it
⚑ Flag

Car...los... Car...los... October 15, 2010

(up) 0 (down)
Yes- they greatly alter the expenses Americans are facing and they involve the consumption of goods in exchange for money, causing economic consequences (good and bad)
⚑ Flag

yankeekid yankeekid October 17, 2010

(up) 0 (down)
Oil itself is an economic commodity and as such has the ability to cause fluctuations in the economy. It is a problem if you rely on its use and thus have to pay more for it when the price goes up (because of a decrease in supply)causing your other spending to decrease.However, if you sell oil or are invested in oil it is not an economic problem when supply is decreased, for you the problem is when supply is increased and your per barrel profit level goes down. What can be done? Diversification of oil suppliers, Development of Natural gas and other local fuel resources along with investment in decreasing reliance on fuel.
⚑ Flag

BradCrump BradCrump November 16, 2010

Add your answer


Post your answer

Try Instatnt Math