walden

4.During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies. In the 1970s Congress imposed an “excess profits tax” on these companies. It did not do so this time? What does this change show about how our understanding of the way the price system works to allocate resources has evolved? If “excess profits” are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?

  1. 👍 0
  2. 👎 0
  3. 👁 33
asked by lafay

Respond to this Question

First Name

Your Response

Similar Questions

  1. ecnomics

    4.During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies. In the 1970s Congress imposed an “excess profits tax” on

    asked by Cynthia on November 5, 2014
  2. History

    "Congress has not declared war since ww2. In eight occasions since then however it has a natural joint resolutions to authorize the president to meet certain International crisis with military force" What is the strongest

    asked by Ren on November 29, 2016
  3. Biology

    'We are currently in an energy crisis. After food, fossil fuels are humanity's most important source of energy. These resources take millions of years to make. We are currently using the fuels that were made more than 300 million

    asked by mysterychicken on March 15, 2010
  4. Biology Research Paper

    'We are currently in an energy crisis. After food, fossil fuels are humanity's most important source of energy. These resources take millions of years to make. We are currently using the fuels that were made more than 300 million

    asked by mysterychicken on March 17, 2010
  5. physics

    The politicians and the news media often warn us of an impending energy crisis. What is the crisis, what can be done about it, and how do you feel about it?

    asked by Anonymous on August 18, 2010
  6. 5th Grade math

    Working Backwards: In the 1980's the Northen White Rhinoceros population decreased by 485 from what it was in the 1970s. By the 1990s the population increased 2 more than twice the population in the 1970s By the 2000s the

    asked by Lucy on September 9, 2008
  7. history

    how did oil crisis in the 1970s illustate the promblem of economic interdependence? A.all nations rely on oil. C. multinational corporation had brought new technologies to developing countries i think its a

    asked by sarah on January 6, 2012
  8. Biology Research Paper

    'We are currently in an energy crisis. After food, fossil fuels are humanity's most important source of energy. These resources take millions of years to make. We are currently using the fuels that were made more than 300 million

    asked by mysterychicken on March 16, 2010
  9. American History

    What was the political impact of the Nullification Crisis? The Nullification Crisis eliminated the executive branch’s authority over states. The Nullification Crisis led to the promotion of federal power over states’ rights.

    asked by Quinn on December 3, 2018
  10. American Goverment

    A foreign policy president tends to be stronger than a domestic policy president because (Points : 1) presidents usually have stronger foreign policy backgrounds. Congress has more public support domestically and less

    asked by christopher on May 17, 2015

More Similar Questions