"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree
Trade is voluntary and only takes place if both sides gain. There is truth to the "inflated price" portion of the statement, since OPEC's price is not truly market-determined but depends on price-fixing agreements. But even though the price is inflated, it must still be cheaper than our next best alternative, or we would not agree to buy OPEC oil.
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Margarine and butter can both be used as a spread on toast. This means that they are:
a. independent goods. b. complementary goods. c. substitute goods. d. Giffen goods. e. inferior goods.
Liquidity refers to the
a. rapidity with which money flows through the economy. b. ease with which an asset can be converted into cash. c. ease with which banks move funds from checking to savings accounts. d. All of the above are correct.