Economic Globalization_ Kristoffer V Tutorial
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Lesson Activity: OPEC and the United States
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Lesson Activity
OPEC and the United States
This activity will help you meet these educational goals:
You will describe the effects of globalization on the world economy, identify the world
organizations that influence global trade, and assess the pros and cons of globalized trade.
Directions
Read the instructions for this self-checked activity. Type in your response to each question,
and check your answers. At the end of the activity, write a brief evaluation of your work.
Activity
You’ll use the information you have learned to examine the impact of the OPEC on global
trade.
Part A
Watch this video of US oil company owner T. Boone Pickens discussing OPEC. Why does
Pickens want the United States to be more independent of foreign oil? Answer the question
in a brief paragraph.
Answer:
He wanted the United States to be more independent of foreign oil because he believed that the country was
too reliant on oil from OPEC countries. He believed that some of the money the United States paid for oil
financed terrorist groups such as the Taliban.
Space used (includes formatting): 266 / 15000
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5/9/24, 11:05 AM
Lesson Activity: OPEC and the United States
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Pickens thinks the United States buys too much oil from OPEC countries. He believes some
of money the United States pays for oil finances terrorist groups such as Taliban.
Part B
In an era of increasing global trade and integration of national and regional economies, why
would the United States want to produce its own oil and not buy from other producers?
Answer the question in a brief paragraph.
Answer:
One reason why the United States would want to produce its oil instead of buying from other producers is to
ensure energy security. By producing its oil, the United States reduces its support for oil imports, making it
weak to disruptions in the global oil market.
Space used (includes formatting): 501 / 15000
In addition to issues related to terrorism, the OPEC nations are not operating in a way that
suggests cooperation. They stage embargoes, which are disruptive to the economies of
embargoed nations. They manipulate prices, sometimes raising them sharply. These actions
don’t encourage trade.
Hide Sample Answer
Part C
Question
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Which points represent a production level that could be economically efficient? Select all that apply. [Image description: The
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Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a three-
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2020
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Use the information from the preceding table to fill in the following table.
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2) You have the following information concerning the production of wheat and cloth in the
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5
a) What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the
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Assume that our world consists of only two countries: the United States (US) and the Rest of
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US
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1. Based on this table, who has the absolute advantage in airplanes?
in the ROW?
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(Hint: fill in the graph.)
D: 5000-1.5Q
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In the world market for scooters, Scooterland is an exporter.
How many scooters are being exported from Scooterland?
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Study Questions and Problems (Ch 07)
Attempts
EDUC 214 Sp2023
Output (Q)
1
2
3
5. Study Questions and Problems #5
4
26
5
Consider the following cost data for a perfectly competitive firm in the short run. Assume the market price is $150, and fill in the remaining cells of the
table.
True
False
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(Dollars)
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120.00
100.00
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290.00
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True or False: In the…
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Beers
Donuts
Year
Price
(Dollars per beer)
Quantity
(Number of beers)
Price
Quantity
(Dollars per donut) (Number of donuts)
2020
2
215
3
155
2021
4
135
3
210
2022
2
150
3
190
Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
(Base year 2020, dollars) GDP Deflator
Year
(Dollars)
2020
2021
2022
From 2021 to 2022, nominal GDP
, and real GDP
The inflation rate in 2022 was
i
x
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
O Real GDP is not influenced by price changes, but nominal GDP is.
O Real GDP includes the value of exports, but nominal GDP does not.
Real GDP measures the value of the goods…
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Figure 1: Daily spot crude oil prices ( Jan 2020 to Dec 2021)
dollars per barrel (S/b)
Oct 26 $86/D
S90
S80
Brent
West Texas
S70
S60
Intermediate
$50
Jan 4. 2021
$50/b
$47/b
$40
S30
S20
$10
Apr
Jul
Oct
Jan
2021
Jul
Oct
Apr
Jan
2020
Crude oil prices increased in 2021 as increasing COVID-19 vaccination rates, loosening
pandemic-related restrictions, and a growing economy resulted in global petroleum demand
rising faster than petroleum supply. The spot price of Brent crude oil, a global benchmark,
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declining in the final weeks of the year.
Brent's 2021 annual average of $71/b is the highest in the past three years. The price of
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less than Brent in 2021.
Source: Crude oil prices increased in 2021 as global crude oil demand outpaced supply - Today in Energy- U.S.
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Could you reply to this message (you can agree/disagree or add more information)?
Message: "To be completely honest, my knowledge on climate change and the science behind it is truly limited. However, I genuinely do believe in climate change and also believe that if actions are not taken quickly, irreversible damage to the planet will change the course of the future for the worse. In the lecture, we have heard countless times how we, as a generation, are the most important in directing the future of planet Earth. I also agree with these statements as well. Past generations have continued to push issues down on to the next group, hoping that others will make a change so that they do not have to. This is also seen in dealing with issues like the national debt and other social issues that are yet to be addressed. Thankfully, it appears that this generation is willing to take on the challenges that others have been fearful of in the past.
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Please help
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Homework (Ch 08)
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2. The demand curve facing a price-taking firm
Vesoro is one of more than a hundred competitive price-taking firms in San Francisco that produce extra-large cardboard boxes for moving. The
following graph shows the daily market demand and supply curves facing the extra-large cardboard box industry.
(?)
50
45
Supply
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30
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20
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QUESTION 1
Alex has a budget of $100 a month for movie tickets and restaurant meals. A movie ticket will cost $10 and a
restaurant meal costs $20. Which of the following combinations is part of Alex's budget constraint?
O a. 2 movie tickets and 4 restaurant meals
O b. 2 movie tickets and 5 restaurant meals
O c. 2 movie tickets and 1 restaurant meal
O d. 4 movie tickets and 4 restaurant meals
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QUESTION 2
Irfan has the budget constraint described in the graph below. If Irfan purchases 1 hour of tutoring per month and
decides to increase his purchases to 2 hours per month, what is the opportunity cost of the 2nd tutoring hour?
Irfan's Budget Constraint
month
3
987
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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practice final 1
For questions 50 and 51 the table below showing the input costs of making bread and cheese might be helpful. Assume that that
costs are constant and that England and Spain each have 40 hours available to make food.
Labor Hours Needed to Make 1 Unit of
Bread
Cheese
Spain
England
1
12
50. England has a comparative advantage in the production of
a. neither good and Spain has a comparative advantage in the production of both goods.
b. cheese and Spain has a comparative advantage in the production of bread.
c. bread and Spain has a comparative advantage in the production of cheese.
d. both goods and Spain has a comparative advantage in the production of neither good.
51. At which of the following prices would both England and Spain be willing to trade with each other?
a. England and…
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Question 9 of 14
1.43 Points
Over time, people have resorted to using the internet instead of newspapers to look for job openings, this change in job search
behavior caused
O A. cyclical unemployment to decrease.
OB. structural unemployment to decrease.
O C. frictional unemployment to decrease.
O D. no effect on the natural rate of unemployment.
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Managerial Economics & Business Strategy (Mcgraw-...
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