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sammylou23 from Online College
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Preview: ... e by John Vidal investigates the theory that another great depression may be right around the corner. He claims that we are at the beginning of the end of the oil age. The peak of available oil will obviously result in a steady decline of available oil and gas (which dominate our lives), and that will undoubtedly change the economy in major ways. Costs will continue to rise steadily as oil reserves start to disappear. There will be intense power struggles for who controls the dissipating oil reserves. “Oil is being produced from past discoveries, but the reserves are not being fully replaced. Remaining oil reserves of individual oil companies must continue to


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shrink. The disparity between increasing production and declining discoveries can only have one outcome: a practical supply limit will be reached and future supply to meet conventional oil demand will not be available (Vidal, 2005).”
The controversial solution to this problem is that we need to move out into the ocean in order to explore the potential that petroleum reservoirs may be located somewhere out there, deep under the ocean floor. That being said, the technology for drilling deep under the ocean comes at a steep price. Ultra deep oil drilling could cost up to 1 billion per oil rig. There a bills being reviewed that may help alleviate some of the costs, but a lot of the potential funders, as well as our government, are not willing to take such a big financial risk on something that cannot be completely guaranteed as a success.
There is much controversy surrounding the Iraq war and its suspected involvement in the oil industry. It is believed by some that the Iraq war is mainly being fought for control of the oil reserves in Iraq. A recent article by Tom Hayden explains how the United States government has recommended that they should be involved in helping draft up an oil law that creates the fiscal and legal framework for investment in Iraqi oil. Tom Hayden’s article also explains how the US government has recommended that they be permitted to attempt in assisting Iraqi leaders in prioritizing the oil issues and wish to begin encouraging Iraqi leaders to start privatizing the national oil industry in hopes of creating a commercial enterprise so that multi-national oil companies will begin investing in their oil. “All of this suggests that the ideological goal of the US invasion

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was not simply to displace Saddam Hussein but to dismantle the Arab nationalist state as a whole, opening the oil fields to privat ...

The full tutorial is about 2015 words long .

Posted by:

sammylou23 from Online College
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Preview: ... be intense and major power struggles for who controls the dissipating oil reserves. One US analyst states, "Just kiss your lifestyle goodbye." BP (a major oil company) states that the oil reserves will not run out for 40-60 years. Every year since the start of the oil industry, it has produced more oil then the previous year. But the estimation of oil reserves is very political and contentious, so one can only assume that this is not the tru ...

The full tutorial is about 348 words long plus attachments.

Attachments:
eco205_appendix_b-4.doc (47K) (Preview)

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mommaof3 from University of Pheonix
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Preview: ... e, 2001, p.1)
Along with wage inequalities, monetary and fiscal policies are also affected by technology.
“The term monetary policy refers to what the Federal Reserve, the nation’s central bank, does to influence the amount of money and credit in the U.S. economy” (Federal Reserve Structure, 2008, p.1). “Over the past two decades, deregulation, vastly improved information and communications technology, and advances in our understanding of finance have combined to accelerate the pace of financial innovation; these innovations have had far-reaching consequences” (Parru, 1996 para. 6).
There's [There is] no strong evidence that aggregate demand has become any less sensitive to monetary policy. An example from the housing industry shows how financial innovations have “cut both ways"; the elimination of deposit ceilings has lessened the adverse disintermediation effect on the housing industry, but this is to some extent counterbalanced by the introduction of ARMs, which have arguably increased the price sensitivity of housing to monetary policy. Furthermore, when we put the issue to the empirical test, the results indicate that the magnitude of interest-rate changes needed to achieve a given effect on output is about the same now as it was in the 1960s and 1970s. Perhaps most important, even if continuing financial innovation does make demand less sensitive to policy, the Fed [Federal Reserve] can adjust its response to compensate for the change.
(Parru, 1996 para. 9, 10).
Monetary policy, wage inequalities, externalities, price elasticities, and supply and demand are not the only factors that affect the technological industry; the economy, as a whole, also determines the success of the industry.
Federal taxes can also affect the ability of an industry to be profitable because raising federal tax elevates the equilibrium price of goods and services; this reduces the demand, lowering the equilibrium demand. As the equilibrium price increases, people may not be willing to pay the additional cost; therefore, producers of Technological products will suffer profit losses. After considering the manner in which tax increases affect the equilibrium price and quantity it is fair to assume, “even though the tax is levied on buyers, buyers and sellers share the burden of the tax” (Mankiw, 2004, p. 125, para.1). The economy’s health also plays a large role of the success of the technological industry. Inflation, for example will cause less of a demand on the goods and services offered by the technological industry.
Inflation is a sustained increase in the general level of prices, which is equivalent to a decline
in the value or purchasing power of money. If the supply of money and credit increases too
rapidly over many months, the result will be inflation. With inflation, a dollar buys less and
less over time.
(Federal Reserve Structure, 2008, p.1)
...

The full tutorial is about 2344 words long plus attachments.

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ECO205 Final.docx (26K) (Preview)