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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

explain the relation between short run average cost and short run marginal costs
VICKY Reply
explain the relation between short run average cost and short run marginal cost
VICKY
explain the relation between short run average cost and short run marginal cost
VICKY
explain the relation between short run average cost and short run marginal cost
VICKY
briefly state the reasons for downwards sloping demand curve ?
The Reply
taste and preference
Fabian
if John was given $10, he would spend none of it on tuna fish.But when asked, he claims to be indifferent between receiving $10 worth of tuna and a $ 10 bill.How could this be?
oliva Reply
Autonomous free demand
sadiq
What is illustrates?
Anik Reply
things to do first as a manager when contacted to create a jewelry inventory system
Moses Reply
what is monopoly
Kadar Reply
in monopoly there in only one producer of the product and there in no substitute of that product in the market .The producer is price maker .
Devendra
mono means single and poly means seller. so a single seller controls the entire market of a particular product. He is the price maker..
premkumar
if x decreases and y decreases what slope is it
Elda Reply
what is duopoly
Femi Reply
it's a state where two people control over a market...
Okonkwo
great
jean-renel
why ppf is downward
Ahmad Reply
i didn't understand
Fatima
The PPF is downward because it shows the the unequal opportunity cost ratios existing in the allocation of resources in the production of two major goods/services in a given economy
Elvis
due to opportunity cost.
samson
this is because goods are sacrifice for the production of the other.
Avuwada
Weldon question and good answer . in my opinion when you allocate some more resources for production of one good among two.
Azizullah
any one what is the difference between need and want?
Azizullah
need is neccesory but want is temporary...
hemanth
any idea about green leadership
ghalib
trends in microeconomics
JOSEPH Reply
Worked out examples of calculating the elasticity of supply
Black Reply
briefly describe the term business cycle
Linda Reply
these are the different economic trends observed by an economy at a given time period. we have the slump,recession, recovery and boom
Betole
saran has decided always spend one 4th income on his clothes what is income elasticity of demand in hindi
Saba Reply
income elasticity is 4
Avuwada
what is diminishing returns?
diminishing returns states that as more variable in put is bing employed on a fixed factor marginal product increase attains maximum and falls certeris paribus.
Avuwada
The law of diminishing returns is the a phenomenon that happens when you gain less satisfaction or in another word less marginal utility when you keep on consuming the same thing over and over again. The more you have of something the less desirable it becomes .
sassia
My first post was about the law of diminishing marginal utility, it was meant for another post .
sassia
however to be precise the law of diminishing returns is used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.
sassia
or you can refer to the text it is mentioned that: "the law of diminishing returns    , which holds that as additional increments of resources are added to a certain purpose, the marginal benefit from those additional increments will decline. "
sassia
Diminishing returns states that when more and more variable inputs are being employed on a fixed input, total product and marginal product increases initially attains maximum and falls (certeris paribus) .
Avuwada
What is monopoly
benzi Reply
nothing
Its when one firm controls the entire market and is the price setter
aaa

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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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