Comparative Economics and financial Systems

Comparative Economics And Financial Systems
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Do not use words and phrases like "social," "society," "organ," "structure" and " for the people." Always write with the objective of informing your reader. Answer each question as parts ABCD fully in two paragraphs, providing as much detail as possible. Be careful of the bolded key words. BE CAREFUL OF THE TIME FRAME FOR EXAMPLES.
1. A. Harold Hotelling forecast that someday the oil industry would come to an end. For the interim period, in between his time and the end of oil, what were Hotelling's expectations for (i) consumers, (ii) oil production investors, and (iii) oil prices?
 Hotelling argued that holders of non-renewable resources such as oil should produce the commodities if the revenue generated will be more than that of other financial instruments. The model assumed that non-renewable resources would be bought and sold in a perfectly competitive market, where consumers access information. To Hotelling, consumers would suffer shortages over time, and it would become more expensive to purchase oil. As such, oil scarcity would necessitate the demand for alternative sources such as nuclear energy.
 The end of the oil industry would mean that oil production investors would divert from the oil and gas industry as there would be less return on investments. A negative outlook in the sector would also indicate that the stocks of oil and gas companies would fall considerably as there would be low demand for the common. Reduced investments would also affect the prices as there would be supply constraints and oil availability, with prices increasing when the demand exceeds the supply.
B. Marion King Hubbard forecast that the oil industry would continue to expand, and then shrink. What reasoning did Marion King Hubbert use to form his expectations?
 U.S. oil production would peak and go into terminal decline by 1970 is by now well worn.
Marion King Hubbard argued that the U.S. oil production would peak as there would be increased production because of higher demand to facilitate exaction, but the resources would be exhausted. The U.S. was increasingly reliant on domestic production while growing oil demand pushed efforts to increase global oil production.
Hubbard focused on conventional crude production, which is more likely to peak earlier than other forms of production. Since Hubbard considered oil and other fossil fuels finite resources, he argued that continuing exploitation of these resources would result in diminished supply over time. The exploitation of the fossil fuel reserves would outstrip their replenishment, while there would also be no significant addition to fossil fuels.
 Unconventional crude oil sources such as shale oil and tar sands simply delayed the oil peak and combined with improved production techniques and technology. There has been increased global production of crude oil. Marion's argument focused on growing oil demand and supply constraints where higher demand would increase oil production, but then the supply would decrease gradually. However, he did not consider that there could be better technology and techniques to increase oil production. Oil extraction from unconventiona...