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As an example, in the United States, oil provides about 40% of all the energy and 32% of the oil used in the United States economy is imported. Several times in the last few decades, when disruptions in the Middle East have shifted the supply curve of oil back to the left and sharply raised the price, the effects have been felt across the United States economy. This is not, however, a very convincing argument for restricting imports of oil. If the United States needs to be protected from a possible cutoff of foreign oil, then a more reasonable strategy would be to import 100% of the petroleum supply now, and save U.S. domestic oil resources for when or if the foreign supply is cut off. It might also be useful to import extra oil and put it into a stockpile for use in an emergency, as the United States government did by starting a Strategic Petroleum Reserve in 1977. Moreover, it may be necessary to discourage people from using oil, and to start a high-powered program to seek out alternatives to oil. A straightforward way to do this would be to raise taxes on oil. What’s more, it makes no sense to argue that because oil is highly important to the United States economy, then the United States should shut out oil imports and use up its domestic supplies of oil more quickly. U.S. domestic production of oil is increasing. Shale oil is adding to domestic supply using fracking extraction techniques.

Whether or not to limit certain kinds of imports of key technologies or materials that might be important to national security and weapons systems is a slightly different issue. If weapons’ builders are not confident that they can continue to obtain a key product in wartime, they might decide to avoid designing weapons that use this key product, or they can go ahead and design the weapons and stockpile enough of the key high-tech components or materials to last through an armed conflict. Indeed, there is a U.S. Defense National Stockpile Center that has built up reserves of many materials, from aluminum oxides, antimony, and bauxite to tungsten, vegetable tannin extracts, and zinc (although many of these stockpiles have been reduced and sold in recent years). Think every country is pro-trade? How about the U.S.? The following Clear it Up might surprise you.

How does the united states really feel about expanding trade?

How do people around the world feel about expanding trade between nations? In summer 2007, the Pew Foundation surveyed 45,000 people in 47 countries. One of the questions asked about opinions on growing trade ties between countries. [link] shows the percentages who answered either “very good” or “somewhat good” for some of countries surveyed.

For those who think of the United States as the world’s leading supporter of expanding trade, the survey results may be perplexing. When adding up the shares of those who say that growing trade ties between countries is “very good” or “somewhat good,” Americans had the least favorable attitude toward increasing globalization, while the Chinese and South Africans ranked highest. In fact, among the 47 countries surveyed, the United States ranked by far the lowest on this measure, followed by Egypt, Italy, and Argentina.

(Source: http://www.pewglobal.org/files/pdf/258.pdf)
The status of growing trade ties between countries
Country Very Good Somewhat Good Total
China 38% 53% 91%
South Africa 42% 43% 87%
South Korea 24% 62% 86%
Germany 30% 55% 85%
Canada 29% 53% 82%
United Kingdom 28% 50% 78%
Mexico 22% 55% 77%
Brazil 13% 59% 72%
Japan 17% 55% 72%
United States 14% 45% 59%

Questions & Answers

An economy exprerience inflation when?
Odirile Reply
given a table of weeks worked and numbers of goods produced per week. help to culculate margin.
Odirile
The taste of preferences of consumers will drive demand
Marisol Reply
Explanation about law of demand
Marisol Reply
The price of the good or service meaning?
Marisol
What is consumer expectation?
Marisol
Any other explanation?
Marisol
marisol u share your explaination pls
OK
The law of demand states that all other things being equal the higher the price of a commodity the lower the quantity of the same commodity demanded inversely. This implies that anytime there is an increment on a price of certain commodity the demand of the same commodity decline.
Nana
consumer expectations are the households view point regarding the market changes. If people are expecting a positive change in the market their Marginal Propensity to Consume will increase and vive versa.
arshad
Marisol are you okay with my explanation?
Nana
yes. thankyou.
Marisol
welcome
Nana
what are the determinants of demand and explain each?
Marisol Reply
what is the price of the good or services meaning?
Marisol
marzi tumhari
Aryan
lol
Aryan
khud par le
Aryan
Define microeconomics and macroeconomics..
Odirile Reply
In free market economy who market resources?
Odirile
Can you please explain how GDP is calculated?
Odirile
yes GDP meas all product produced in Economy first the country have to calculate all goods produced then we have to see the market value of goods at final stage we have to mutliple final goods to their market price we get GDP
Wani
what is consumer expectation?
Marisol
suppose country are producing 10 goods price of per good is $1 therefore GDP = 10 good × $1 =$ 10
Wani
Thank you for the answers @Wani
Odirile
most welcome odirile
Wani
what is the price of the good or service?
Marisol Reply
suppose price of per good is (ice-cream) is 5 the consumer are ready for buying 2 goods(2 ice creams) if price will increase from 5 to 10 per good then the consumer will demand only one good or one ice-cream because price is increased and his income is limited
Wani
what is income buyer?
Marisol
in law of demand we assume some factors constant some factors are income taste future preference constant
Wani
what is price of related goods or services?
Marisol
suppose your income per month is 10, 000 and your needs satisfied by these 10,000 if price of good will increase you need more than 10,000 to satisfy your needs that is why we says at higher price demand of goods decrease
Wani
What is the taste of preferences of consumers will drive demand?
Marisol
suppose you are eating pizza and u fell its taste good you will buy more pizza this called taste we assume in law of demand that taste of goods remain Same
Wani
related goods are either complementary goods are substitute goods
Wani
what is Consumer expectation?
Marisol
relationship between price and quantity? about the law of demand
Marisol Reply
P⬆️ Qd⬇️
DNA
what is law of demand?
Marisol
If Prince increases, Quantity demand will decrease and vice versa. So relationship b/w price and demand is inverse. There are some exceptions also. Like complementary goods and substitute goods.
DNA
any other answers? thankyou anyways. Twas a big help.
Marisol
the law of demand states that, "conditional on all else being equal, as the price of a good increases, quantity demanded decreases; conversely, as the price of a good decreases, quantity demanded increases".
DNA
law of demand says when price of good increase there demand will decrease and vice versa in short law of demand show negative relationship between price and demand of goods
Wani
All other factors like income, taste, preference, season shall remain constant
DNA
Rohi g Bilkul sahi farmov veh!
DNA
law of demand not apply on Griffen goods and luxurious goods
Wani
sir will u plz explain me why we add Griffen goods in aggregate demand no body explain me this question
Wani
definition of monopoly
Odirile
monopoly is a form of market where there is only one supplier , supplying the product . in other words monopoly means only one industry or enterprise are selling the product
Wani
what is monopolistic
Odirile
what are the determinants of demand and explain each?
Marisol
monopolistic competition is a form of market where there are many sellers selling differentiated product
Wani
bravo
Aryan
answer
Aryan
determinants of demand are 1.income :- if income of a person increase its demand for products will increase 2 . price :- if price of product increase there demand will decrease and vice versa 3. taste :- if buyer feels taste of product good then his demand for that product will increase
Wani
there are 5 determinants of demand?
Marisol
yes another one is if there customer are more in Economy more good will be demand
Wani
and what is the last one? I mean the fifth one?
Marisol
the other one is related goods related goods are either substitute goods are complementary goods if goods are substitute then if price of good will increase then demand for its substitute will increase
Wani
thankyou ❤️
Marisol
What is the concept of rationality in economics
Odirile Reply
Remuneration 10000 Net trade surplus 8000 Provision for depreciation 500 Indirect taxation 700 subsides 1000 Net factor payments 500 using information above calculate: 1GDP at factor cost 2GDP at market Price 3GNP at market price 4National income
Odirile
rationality simply means that you will always go for best choice in the available set of choice.
Rahul
which actions would most likely shift the production possibilities frontier outwards?
Odirile
what is consumer expectation in economics?
Marisol
the factory that cause shift to PPC are labour force, price of inputs. use of technology etc.
Wani
Marisol where from you
Wani
thankyou for the answers.
Marisol
From the Philippines Sir.
Marisol
most welcome marisol
Wani
a. Assume that Good X is a Giffen good, illustrate and explain the income and substitution effects for a decrease in the price of good X.
Thulisa Reply
as price of good X(assume as Griffen good) decrease income of the consumer increase , consumer will demand other goods rather than the Griffen goods thus at lower prices of good X it's demand will decrease.
Wani
what is law of demand
Hugo Reply
what is the law of demand
Hugo
What is the law of demand
Hugo
just considering the relationship between price and quantity, holding other factors constant.
Donation
when the price of a commodity increases, it's demand will decrease. and when the price of a commodity decreases, it's demand will increase, other things remaining the same or constant. That is called Law of Demand.
Azka
other things remained constant there is inverse relationship between price and quantity demand i .e when price of a commodity increased the demand of quantity will decrease and vice- versa.
khatoon
right @KhatoonNafisa
Azka
Other answers about the law of demand and how it relates between the price and quantity?
Marisol
sir define me prison of delima
Ibrahim Reply
it is a paradoxical situation, where two individuals acts for their self interest but don't achieve the optimal point.
Rahul
gays why we add Griffen goods in aggregate demand as we know Griffen goods have positive relationships that means if price increase demand of goods also increase .but in aggregate demand there is a negative relationship between price and aggregate output.
Wani
what is the concept of rationality in economics?
Odirile
explain the determinants of derive demand?
what financial market is all about
Emmanuel Reply
What happens to the ppf curve due to following events a) A relaxation of policies allowing more foreign direct investment into the country b) Increasing the minimum wage level c) A decrease in expenditure on research and development d) An increase in the retirement age
luvi Reply
is truly
Ibrahim
Discuss various from the imperfect competition
ZuBaIr Reply
hi how do get your workers to be more competitive
Margaret
hey where from you all
Wani
kashmir
Ahmad

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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