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Which of the following would be considered a solution ? A salt in the sugar bowl B sugar added to water C oil added to water D any fat-soluble substance mixed with water soluble substance

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Which of the following would be considered a solution ? A salt in the sugar bowl B sugar added to water C oil added to water D any fat-soluble substance mixed with water soluble substance

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A certain skin lotion is a fine mixture of water and various oils. This lotion is cloudy and cannot be separated into oil and water by filtration. Moreover, its components do not separate when left standing. What type of mixture is it? solution suspension colloid compound NextReset

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The answer is: colloid.

In the presence of an emulsifying agent, a mixture of oil and water becomes a colloidal dispersion.

Colloidal dispersion (colloid) is a system, in which discrete particles, droplets or bubbles of a dispersed phase (in this case oil), whose size at least in one dimension is in the range from 1 to 1000 nm are distributed in the other, usually continuous phase – dispersion medium (in this case water) differing from the dispersed phase in composition or state of aggregation.

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What did the United States of America do in retaliation against Iran? They sent more troops to the area. They detained Iranian refugees. They froze all Iranian assets. They boycotted oil from the region.

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The correct answer should be
They froze all Iranian assets

They also introduced sanctions and put an embargo on all trade with Iran. They didn’t boycott oil since nobody would do that, and they didn’t send troops out of fear of what would happen to those people. No detaining of Iranians occurred either because it would be counter productive.

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Which of the following is a renewable resource A. Copper B. Aluminum C. Peanut Oil D. Natural Gas

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Peanut Oil is an example of a renewable resource.

Further Explanation

  • Available resources in nature can be classified into renewable resources and non-renewable resources.  

Renewable resources  

  • These are energy sources that are replenished naturally within short periods of time.
  • Renewable resources are more convenient and desirable to use because they renew faster and therefore there is continuous regeneration with use.
  • Renewable resources are therefore, inexhaustible as they cannot be exhausted permanently as they are continuously supplied by nature.
  • Examples of renewable resources include; wind, solar, water, biomass and geothermal.
  • Solar energy is a renewable resource as the sun will shine through out. Wind energy is another renewable resource as wind cannot be stopped from blowing.
  • Geothermal energy is also a renewable energy that generates heat from the earth. Other examples of renewable resources include bio-fuels, fuels that are obtained from living organisms.

Nonrenewable resources.

  • These are resources that are available only in limited supply.
  • Nonrenewable resources include; coal, natural gas, oil, and nuclear power.
  • Nonrenewable cannot be replenished like renewable resources and are exhaustible as they are not continuously replenished by nature.
  • Nonrenewable resources are scarce resources and are not abundantly available in nature. Additionally, they are costly and not easily available.  
  • Despite the importance use of nonrenewable resources, they have various negative impact on the environment, such that they pollute the atmosphere by releasing various pollutants in air when burned.  

Keywords: Resources, renewable resources, nonrenewable resources

Learn more about

Level: High school  

Subject: History  

Topic: Renewable and nonrenewable resources  

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Why were the mujahideen fighting in Afghanistan in the 1980s? A.Because U.S. oil companies had taken over the country and took away all the profits B.Because the Iran/Iraq war spread into Afghanistan, as Khomeini and Hussein supported different Afghani groups. C.Because the Soviet Union had troops supporting a Communist government that went against local traditions D.No answer is correct.

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The correct answer is
C.Because the Soviet Union had troops supporting a Communist government that went against local traditions

The soviets sent troops to help a local government of socialists and communists to rule the country. The Mujahadeen were religious and wanted to stop this so they took help from the United States who didn’t want more countries to become communist satellite states for the Soviet Union.


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Why was the invention of oil painting considered important to painters in the renaissance?

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Answered by answersmine AT 22/10/2019 – 05:00 AM

The process of oil painting is using drying oil with pigment in order to create a picture. The person who is most commonly known as the inventor of the technique is Van Eyck. Linseed oil, poppy seed oil, walnut oil and safflower oil are the most commonly used oils for this technique. By the peak point of the Renaissance, the most common painting technique was oil painting in comparison to tempera paints. Oil paints became more popular than tempera due to their ability to take longer to dry providing artist more time to paint as well as being brighter and providing a smooth finish in comparison to tempera.

Post your answer

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A 12-g sample of cooking oil, which is a fat, contains ________ kcal. (energy value for fat = 9 kcal/g)

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25) Answer is: less metallic and more nonmetallic.

Electronegativity increases from left to right across a period, atoms have tendency to attract electrons.

Electronegativity (χ) is a property that describes the tendency of an atom to attract a shared pair of electrons.

26) Answer is: radioisotope.

Radioisotope has an unstable atomic nucleus and emit energy and particles when it changes to a more stable form.

Francium (Fr) is element with atomic number 87 (87 protons and 87 electrons).

27) Answer is: boils.

Boiling is the temperature at which the vapour pressure of the liquid is equal to the pressure exerted on the liquid by the surrounding atmosphere.

The Celsius scale was based on 0°C for the freezing point of water and 100°C for the boiling point of water at 1 atm pressure.

28) Answer is: endothermic.

There are two types of reaction:  

1) endothermic reaction (chemical reaction that absorbs more energy than it releases, ΔH>0).

2) exothermic reaction (chemical reaction that releases more energy than it absorbs).  

For example, the breakdown of ozone is an endothermic process. Ozone has lower energy than molecular oxygen (O₂) and oxygen atom, so ozone need energy to break bond between oxygen atoms.  

29) Answer is: kinetic.

The average kinetic energy of molecules depends on the temperature.  

As temperature increases, molecules gain more energy from surrounding and move faster.  

Kinetic energy (standard unit is the joule J) depends on speed of the molecule.  

Solid gains kinetic energy to become a liquid and then becomes a gas.

30) Answer is: alpha particles.

This was famous Rutherford’s Gold Foil Experiment: he bombarded thin foil of gold with positive alpha particles.

Rutherford observed the deflection of alpha particles on the photographic film.  

Alpha particles are helium atom particles, consist of two protons and two neutrons.  

According to Rutherford model of the atom: atoms have their charge concentrated in a very small nucleus.  

31) Answer is: highest.

For example, calcium oxide.

Calcium oxide (CaO) has ionic bonds between calcium cations (Ca²⁺) and oxygen anions (O²⁻).

Because it has strong ionic bonds, it has high melting point (around 2600°C).

Ionic bond is the electrostatic attraction between oppositely charged ions (cations and anions).

32) Answer is: a scientific model.

A scientific model is a representation of an idea, an object, a process or a system that is used to describe and explain phenomena that cannot be experienced directly.

33) Answer is: the superscript is mass number and the subscript is atomic number.

Atomic number(Z) is the number of protons, which is characteristic of a chemical element..

Mass number (A) is the total number of protons and neutrons in a nucleus.

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Egypt, Libya, and Nigeria are all important suppliers of __________ to the US. A. diamonds B. gold C. fruits and vegetables D. oil

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The most important way in which the Greek influenced American democracy way was by allowing citizens to participate in government.

American took a clue from ancient Greek political system, which is democracy. It allowed all Athenians except women to take part in the political process, although in the United States both men and women are allowed to participate in American Democracy.

Further Explanation

After the United States got independence from England in 1776, the founders had the opportunity to choose how they will govern themselves. It was a very difficult task and for guardians, the founders looked for difference philosophies and examples of government throughout the world.

The democratic system of government of ancient Greece greatly influenced how the founding fathers came about the democracy practiced today in the United States.  

Before independence, the east coast was divided into 13 separate colonies. The founding fathers didn’t dissolve these colonies into colonial boundaries; rather it was divided into states. The founders dissolve the colonies into states so that each region would be governed at the local level and with the scope of national government, which will have power over all the state. In the United States, states actually looked like ancient Greek community structure known as polis or city-state.  

A polis is made up of urban centers including the land that surround it. Its development is also similar to how major cities and states capital in the United States were structured including rural areas surrounding each state.

LEARN MORE:

KEYWORDS:

  • greek
  • democracy
  • american
  • england
  • independence

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North African countries, such as Libya and Egypt, are known for their production of __________. A. oil B. diamonds C. gold D. uranium

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North African countries, such as Libya and Egypt, are known for their production of __________. A. oil B. diamonds C. gold D. uranium

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The addition of 435.2 j of heat is required to raise the temperature of 3.4 g of olive oil from 21?c to 85?c. what is the specific heat of the olive oil?

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The addition of 435.2 j of heat is required to raise the temperature of 3.4 g of olive oil from 21?c to 85?c. what is the specific heat of the olive oil?

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How has oil then significant to the middle eastern politics A. It has led to piece in the region. B. It has had a minimal influence on politics. C. It has been shared among all middle eastern countries. D. It has been used as a source of political power.

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Poland Hungary Bulgaria

In the aftermath of World War II, the influence of the Soviet Union extended through the countries that were invaded by fascists in the Eastern Front, such as Poland, Hungary, and Bulgaria.

Poland

In January 1947, elections were held, resulting in the communist Republic of Poland. Previously elections were intervened so the communist candidates could turn victorious, and the members of communist resistance continued to resist in the territories near to Ucrain but fierce soviets intervention turned to mass arrest where all kinds of executions, deportations, and imprisonment took place.

Hungary

In Hungary, the Soviets imposed harsh conditions that seized key raw materials and interfered in the internal affairs and social, policymaking. The Red army set some vigilance with police to persecute political opponents and enemies of the state.

Bulgaria

In September 1944, The Soviets declared war on Bulgary, under the argument that this country allowed its territory where the Wehrmacht (Germany) crossed and continued to press the frontlines eastwards. The Red Army motivated a coup d Etat where communists also set favorable conditions for the creation of a communist regime.

-This countries became to form the Eastern bloc, a period that lasted several decades until the 1989 Revolutions set an important amount of political and social changes in Europe in East and Central Europe, causing most of the socialist states, formerly puppet states to Soviet Russia to collapse and engage in democratic process and incorporate a different economic model.

The map shows key allied states in this Eastern bloc

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Technician A says when the oil is completely drained, you should install and torque the drain plug to specifications. Technician B says that you should overtighten the plug to prevent stripping. Which technician is correct? A. Neither Technician A nor B B. Technician A only C. Technician B only D. Both Technicians A and B

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Technician A says when the oil is completely drained, you should install and torque the drain plug to specifications. Technician B says that you should overtighten the plug to prevent stripping. Which technician is correct? A. Neither Technician A nor B B. Technician A only C. Technician B only D. Both Technicians A and B

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An old door is very hard to open until oil is sprayed on its hinges. What does the oils do? A)It increases the force of friction B)It increases the force of gravity C) It reduces the force of gravity D)It reduces the force of friction

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The gravitational force Fg between two objects is given by the equation:

Fg=(G*m₁*m₂)/r₂, where G=6.67*10^-11 m³ kg⁻¹ s⁻² is the gravitational constant, m₁ and m₂ are the masses of the two bodies and r is the distance between those bodies. 

Due to the gravitational attraction the pencil and the eraser will attract if we there is no friction on the surface. 

m₁=10 g=0.01 kg is the mass of the pencil
m₂=20 g=0.02 kg is the mass of the eraser
r=2.5 cm = 0.025 m

First we calculate the Fg:

Fg={(6.67*10^-11)*0.01*0.02}/(0.025²)=2.1344*10^-11 N

To get the velocity v of the pencil:

v²=2as, where a is the acceleration of the pencil and s is the path. In our case s=r so we can write:

v²=2ar

a=Fg/m₁= 2.133*10^-9 m/s²

v²=2*(2.133*10^-9)*0.025=1.0665*10^-10

v=√(1.0665*10^-10)=1.0327*10^-5 m/s

We have the velocity and the acceleration, so we can calculate the time t with the equation:

t=v/a=(1.0327*10^-5)/(2.133*10^-9)=4841.6 s

1 hour has 3600 s so when we divide time t in seconds by 3600 we get time T in hours:

T=t/3600=4841.6/3600=1.3449 h. 

So the time for the pencil and eraser to touch is T=1.3449 hours. 

Also time T can be expressed like T= 1h and 20 mins and 41.64 s

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Both petroleum and coal are made up of complex carbon-based molecules, and both originated with living creatures of some kind. Both are vital sources of energy for the modern world and both were formed by geologic processes over millions of years. However, petroleum was mainly formed from the remains of ocean-dwelling microorganisms. Coal, on the other hand, originated from decayed vegetation in ancient swamps and bogs. In any case, it took millions of years for both coal and oil to be produced. This is the case because it took that much time for overlying sediments to produce the unimaginable heat and pressure that would one day allow us to harvest these energy resources. This passage uses a combination of comparison and contrast and A. examples and explanations. B. cause and effect. C. chronological order. D. supporting details.

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Duration, tempo, intensity, scope, setting, and chronology are 6 basic attributes of time.
Duration refers to how long something lasts; tempo refers to how many frames per second there are; intensity can either be high or low, depending on action; scope can be extensive or limited, also depending on how much action there is; setting is the place where the movie is happening; chronology refers to the sequence of time events.

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A fuel oil tank is an upright cylinder, buried so that its circular top is 14 feet beneath ground level. the tank has a radius of 5 feet and is 15 feet high, although the current oil level is only 14 feet deep. calculate the work required to pump all of the oil to the surface. oil weighs 50lb/ft350lb/ft3.

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Say we have a cylinder
that has a height of dx, we see that the cylinder has a volume of: 

Vcylinder = πr^2*h = π(5)^2(dx) = 25π dx

Then, the weight of oil in this cylinder is: 

Fcylinder = 50 * Vcylinder = (50)(25π dx) = 1250π dx. 

Then, since the oil x feet from the top of the tank needs to
travel x feet to get the top, we have: 

Wcylinder = Force x Distance = (1250π dx)(x) = 1250π x dx. 

Integrating from x1 to x2 ft gives the total work to be: (x1
= distance from top liquid level to ground level; x2 = distance from bottom
liquid level to ground level)

W = ∫ 1250π x dx  
W = 1250π ∫ x dx
W = 625π * (x2 – x1)

x2 = 14 ft  + 15 ft = 29 ft

x1 = 14 ft + 1 ft = 15
ft


W = 625π * (29^2 – 15^2) 
W = 385,000π ft-lbs
= 1,209,513.17 ft-lbs

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Which of the following is a nonrenewable resource? A solar B oil C water

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The correct answer is – a) Geological processes contribute to the formation of vents in that region.

The western part of the United States is geologically much more active than the other parts of the country. This is due to the geological activity in the region which is caused by the subduction of the heavier oceanic Pacific tectonic plate under the lighter North American tectonic plate. Because of this, the pressure, temperatures, magma, gases, form the mantle are able to come to the surface, and one of the results is the hydrothermal activity.

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Crude oil is derived from which of the following materials? Marine Organisms Plants Rocks Salts

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Answer : The correct option is, salt and water  

Explanation :

  • Heterogeneous mixtures : It is a type of mixture in which the appearance of the solution throughout is non-uniformly and the particle size or shapes are also different.
  • Homogeneous mixtures : It is a type of mixture in which the appearance of the solution throughout uniformly and the particle size or shapes are not different.

Sand and water : It is a heterogeneous mixture in which the particle size of the sand and water are different. The mixture of sand and water can be separated by the physical method like filtration.

Salt and water : It is a homogeneous mixture in which the salt is completely dissolves in the water. The mixture of salt and water can not be separated by the physical method.

Salad dressing  : It is a heterogeneous mixture in which the particle size of the salad are different. The Salad dressing can be separated by the physical method.

Soil : It is a heterogeneous mixture in which the particle size of the solit are different. The soil can be separated by the physical method.

Hence, the salt and water solution is a homogeneous mixture.

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How many gallons of oil are in a barrel

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How many gallons of oil are in a barrel

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Mayonnaise is made of egg vinegar and oil under which category could it ne classified in a.elements b.compounds c.solutions d.colliods

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1.   The equation 2NO2↔N2O4 shows a system  (1 point)
 in chemical equilibrium.
 
2.   If an endothermic reaction is in equilibrium, what will happen when you increase the temperature?  (1 point) 
More products form. 

3.   One way to determine the degree of saturation of a solid-liquid solution is to drop a crystal of the solute into the solution. If the crystal sits at the bottom of the container, the solution is  (1 point) 
saturated

4.   To calculate the molarity of a solution, you need to know the moles of solute and the  (1 point)  
volume of the solution

5.   Which of the following foods would NOT taste acidic?  (1 point)
 celery 

6.   A base is defined as a compound that produces  (1 point) 
hydroxide ions in solution. 

7.   The salt that is formed during the reaction between potassium hydroxide and hydrochloric acid is  (1 point) 
KCl.

8.   An acid can be defined as  (1 point) 
a proton donor.

9.   A substance dissolves in water by breaking up into smaller pieces. These pieces of the same substance spread throughout the water. This process is known as ____________________.  (1 point) 
diffusion

10.   Stirring increases the rate of solution of a solid in a liquid because solute particles in solution are moved _____________ the surface of the solid.  (1 point)
away from

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There is a public debate between the three candidates for the U.S. Senate. During the debate, the topics of oil and energy are addressed. Each candidate expressed their view on the issue: Edgar Eisenhower: “We need to cut our dependence on foreign oil. Instead, let’s use the natural world around us. Think about the sun, wind, water, the heat of the earth, and the crops in our fields. These will make for affordable energy in the 21st century. We should fund research in those areas. Let us also increase tax credits for private investment in clean, renewable sources of energy.” Rebecca Roosevelt: “We need to cut our dependence on foreign oil and develop a national energy strategy. We should provide tax incentives for producing energy in the U.S. Let’s increase U.S. supplies of coal, oil, and natural gas. We should promote environmentally responsible exploration and development of oil and gas reserves. That includes federal land like Alaska’s National Wildlife Refuge. Let’s also advance clean coal technology.” Terrance Taft: “Looking at our energy supply is one thing—how we’re using it is another. We can drive smaller, more fuel efficient cars. We can invest in more efficient technology for our homes and businesses. These things add up and make a big difference. In fact, in several new buildings associated with Taft Inc., we address our energy needs with locally produced renewable energy. That wouldn’t be possible if we were using outdated, energy guzzling technology.” Often politicians will agree that something is a priority, but have very different recommendations on how to best address it. What would be the best example of this from the previous section? 1. Both Terrance Taft and Edgar Eisenhower agree that inefficiency is bad, but disagree on how to make things more efficient. 2. Both Rebecca Roosevelt and Edgar Eisenhower agree that we need to reduce our dependence on foreign oil, but disagree on the best way of doing so. 3. Both Terrance Taft and Rebecca Roosevelt agree that alternative energy is important, but disagree about which form would be the best to invest in. 4. Both Rebecca Roosevelt and Terrance Taft agree that developing alternative energy sources is important, but differ on the best way of doing so.

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Answer:

The American participation in the Vietnam War was very different from its involvement in the Bay of Pigs Invasion.

In the Vietnam War, the United States carried out direct participation, with first-hand military planning and execution and large-scale attacks. Some 60,000 Americans died in the conflict, of about one million who participated.

In contrast, in the Bay of Pigs Invasion, American participation was indirect. That is, the attack was planned and the troops trained by American forces, but these were made up of Cuban exiles, not American soldiers. In addition, it was a small-scale attack, both because of the low number of men involved and because of its short duration.

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Which of the following business practices, which forced competitors to shut down, was Standard Oil accused of engaging in? A. price fixing B. predatory pricing C. price discrimination D. price deregulation

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The gross domestic product of Iceland was $25.88 billion in 2018, and the growth rate was 4.6%. The country has recovered from the crisis that it suffered in 2008.

Financial crisis:

In 2008, Iceland nationalized its largest banks, namely, Glitnir Bank, Landsbanki, and Kaupthing Bank, which had defaulted on foreign debt of $62 billion. The collapse of the bank sent foreign investors out of the country. Its currency krona went down by 50 percent, and the stock market fell by 95 percent. The crisis started when the bank accepted deposits from the United Kingdom and the Netherlands and offered an interest rate of 15 percent. This created inflation in the economy. The banks invested in $100 billion in foreign companies, soccer teams, and real estate.

In the 2008 global financial crisis, the major bank shutdown in the United States and the stock market crashed this lead to the banks towards bankruptcy.  The government could not bail out the banks because it did not have the money.

Government Collapse:

The country’s bankrupt caused the government to collapse in 2009. The cause of the failure was the resignation of Prime Minister Haarde.  

Iceland Recovery:

In 2009, Johanna Siguroardottir was elected by the citizens of Iceland. She put a restriction on investment outside the country. She also raised taxes and provided social services, debt relief to mortgage holders.

As people started investing in local businesses like real estate and private equity, tourism boomed when local prices fell because of the low currency exchange rate.

Learn more:

1.      Learn more about the objective of the budget

brainly.com/question/1226004

2.      Learn more about the revenue and expenditure

brainly.com/question/1890422

3.      Learn more about the large expenditures

brainly.com/question/7744644

Answer details:

Grade: Middle School

Subject: Business Studies

Chapter: Global Economy

 

Keywords: Iceland’s economy, banks, businesses, regulation, people, GDP, gross domestic product, Netherlands and offered an interest rate, Johanna Sigurðardóttir, Iceland nationalized its largest banks, namely, Glitnir Bank, Landsbanki, and Kaupthing Bank.

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Read a student’s reaction to a nonfiction article. Summary: I read an article by Alfred Jenson about oil spills. Jenson has crossed the Arctic Ocean many times on vessels designed for exploration and research. He believes oil spills can be prevented with stricter international regulations governing oil transport. Controlling Idea: The controlling idea of Jenson’s article is that many oil spills have occurred in recent years in the Arctic Ocean. What must the student add to make this controlling idea complete? a) Jenson’s viewpoint b) expert testimony c) Arctic Ocean statistics d) specific dates

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The correct answer to this open question is the following.

Communication differences between men and women.

Men are very direct. They say what needs to be said and that’s it. No more. Straight to the point. Women are different When they communicate they openly express themselves ad tell their stories in full detail.

Men communicate to convey orders, directives, to order something that needs to be accomplished. Women communicate because they like to build relationships and understand other women or men. Men are not so expressive. They do not gesticulate much. They say what they have in mind, with no more gestures or expressions. Women are different, they seem like they are acting when they speak. They have gestures, they move their hands and arms, the entire body. They laugh. Women show emotion in their conversations. Men are straightforward and emotions are out of the question.

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Which of the following is one of the reasons that the United States invaded Iraq in 2003? The U.S. wanted to take control of Iraq’s oil fields. The U.S. believed that Iraq possessed weapons of mass destruction. The U.S. believed that Iraq was protecting al Qaeda and Osama bin Laden. The U.S. wanted to liberate Kuwait, which had been invaded by Iraq.

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Arizona and South Dakota.

Arizona is the state with probably more Native American reservations than any other. We could name a couple such as the Navajo Nation, Tohono O’odham Nation, San Carlos Apache Reservation, Hopi Tribe, Colorado River Indian Tribes, among many others. A fun fact is that with such an amazing diversity of Indian culture, Arizona has one-fourth of its territory occupied by more than 20 reservations!

Second to Arizona, South Dakota is also one of the states with an outstanding abundance of Indian American reservations, among which we can find, the Pine Reach Indian reservation, the Flandreau Indian reservation, the Rosebud Indian reservation, and others.

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OPEC Cartel and Oil Prices Fluctuation

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OPEC Cartel And Oil Prices Fluctuation

Abstract

This paper has briefly discussed the OPEC cartel and fluctuation in the oil prices. OPEC was established in Baghdad, Iraq and five countries signed the agreement in September 1960. In the next section, this paper has discussed the fluctuations in oil prices and clashes between OPEC members that have been observed and are yet to be solved. The global market for oil has been shaped by the OPEC decisions but recently, the rapid rise in the production of shale oil has reduced the impact of efforts made by OPEC to control global oil market. Moreover, OPEC cartel has also discussed in the paper that had been under severe pressure since oil prices started to tumble and leading some to say that OPEC cartel is falling apart and in 2016, the prices of oil rose by over 5 percent. OPEC cartel has forced by the boom in shale production in the U.S. to increase its forecasts of crude supply for the year of 2018 but it said that intensifying global demand for oil would keep helping eat up the excess supply. The difference of opinion between OPEC members on the ideal crude oil price highlighted the concerns over growing shale output and the ability of the United States producers to crash the market potential. Furthermore, in the next section, the influence of OPEC on oil prices has briefed in the paper to understand the phenomenon behind oil price fluctuations considering its demand and supply factors.

OPEC Cartel and Oil Prices Fluctuation

Introduction

OPEC (The Organization of the Petroleum Exporting Countries) was established in Baghdad, Iraq and five countries signed the agreement in September 1960 namely Iraq, Kuwait, Islamic Republic of Iran, Saudi Arabia and Venezuela. These countries are the founder members of OPEC, later joined by Qatar in 1961, Libya in 1962, Indonesia in 1962, UAE in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973, Gabon in 1975, Angola in 2007 and Equatorial Guinea in 2017. OPEC Country wise market share is given in Appendix A. Indonesia decided to suspend its membership from OPEC in 2016. Currently, OPEC has 14 member countries.

In the oil market, production cuts are one of the most powerful tools of OPEC. In 1982, 13 members of OPEC decided to cut their oil production on daily basis by almost 700,000 barrels so that maximum total output could be achieved of 17.5 million barrels a day. In November 2016, OPEC non-members, as well as members, decided alike to reduce the production of oil to check the strong volatility and imbalance in the global oil market. OPEC decided to reduce the output by almost 1.2 million barrels a day from January 2017 so that maximum of 32.5 million barrels a day could be set. Although the agreement was to last for six months, it was extended later for another six months. Since then, many fluctuations in oil prices and clashes between OPEC members have been observed that are yet to be solved. The global market for oil has been shaped by the OPEC decisions but recently, the rapid rise in the production of shale oil has reduced the impact of efforts made by OPEC to control global oil market. This paper briefly discusses the OPEC cartel as well as fluctuations in oil prices.

The OPEC Cartel

The OPEC is the example of international cartel, (different entities agree to the certain price/quantity and agree to collude, then they create cartel that is type of oligopoly market formed and operates secretly and it is up to the members of cartels if they want or do not want to keep their cartel agreement intact). The international market for Oil has progressed through the earlier concentration and dilution cycles where market players were challenged by the competitors and assumed control.  The true power of OPEC cartel lies in the organization control over spare production capacity that so on low-cost. In terms of production capacity, reserves, dependency on oil revenues, and economic absorption capacity, the member countries of OPEC are asymmetric. Thus, the regional OPEC countries’ geopolitical manoeuvres fuelled by the foreign involvement strain the OPEC cartel’s cohesion as the economic alliance.

OPEC revised higher production growth of 2018 for the consecutive second month in 2018 from outside the oil cartel as the output was spurred from the United States and other global producers due to the higher crude prices. OPEC cartel had been under severe pressure since oil prices started to tumble and leading some to say that OPEC cartel is falling apart. The renewed interest in growth opportunities and steady recovery in oil prices since 2017 has led the major catching up of oil in exploration activity term in 2018, both in offshore deep water and in the shale industry.

Oil Prices Fluctuation And OPEC Clash

The OPEC members gathered in September 2016 and decided to cut the oil output for the first time after 2008 and this was an informal meeting and all the members agreed this cut in output was modest. In 2016, the prices of oil rose by over 5 percent while Saudi Arabia insisted that other members have to follow the suit if they want Saudi Arabia to cut output as well. The oil market has been struggled since 2016 to find the market bearing in the new market landscape. Since 2014, oil prices have increased to their highest level, buoyed by outages’ spate and economic upswings in the world are boosting demand for fuel and oil. According to the report by U.S. Energy Information Administration, crude stockpiles fell in mid of January 2018 by 1.1 million barrels. Then it was reported by American Petroleum Institute that 4.8 million barrels of crude stock have increased in the United States. On New York Mercantile Exchange, crude futures in the United States increased $1.14 to $65.61 per barrel. Both gasoline and diesel inventories have risen in the United States in January 2018. The crude oil supply was increased along with the higher prices and this has created the risk for OPEC member to cheat on their cut deal, as said by analysts.

OPEC cartel has forced by the boom in shale production in the U.S. to increase its forecasts of crude supply for the year of 2018 but it said that intensifying global demand for oil would keep helping eat up the excess supply. According to OPEC, the supply of non-OPEC producers should rise by 1.4 million barrels per day for the year of 2018. The prices of crude had increased by over 50 percent in the second half of the year 2017, with Brent hovering about 70 dollars per barrel much of January 2018. Limited supply and rising demand are the two main factors that had helped the oil prices in recent months. Appendix B shows the change in forecast plan of OPEC.

According to OPEC, the expectations of oil demand of world are to be reached at 98.6 million barrels per day in 2018, representing 1.59 million barrel’s growth per day along with the demand growth of 2017. Worldwide growth in oil demand exceeded 1.4 million barrels per day in the row in 2017 for the third year, a consequence of globally healthy economic conditions and steady product price environment relatively. ‘The close connection between oil demand and economic growth is anticipated to continue, for the short term at least,” said by OPEC cartel. Demand rises at the same time, a plan led by OPEC, since the start of 2017, has held crude output back by around 1.8 million barrels per day through the end of the year 2018.

As said by the International Energy Agency, the production of shale has so much risen already that OPEC crude demand would stay below the current production of cartel through 2020 and it can put the group under pressure to limit output for more than anticipated by most members. The difference of opinion between OPEC members on the ideal crude oil price highlighted the concerns over growing shale output and the ability of the United States producers to crash the market potential. Saudi Arabia is on one side that wants oil price at 70 dollars or more per barrel, and Iran is on the other side that wants oil price at around 60 dollars per barrel. The difference of views has driven this split that over whether 70 dollars per barrel would send the United States shale companies into the production anger that could cause the crash to prices.

OPEC Influence on Oil Prices

Oil demand in a normal good or more precisely it is income elastic which means that demand for oil increases with higher percentage along with the increase in income. Oil is not a luxury product but necessity for transport this is why usually people are willing to pay for the higher oil prices. On the other hand, oil supply is inelastic in the short-run due to the significant production cost and oil demand is inelastic to price i.e. even doubling the oil prices, there will be not any significant impact on oil demand. This is the reason that oil consumption is vulnerable to the exploitation made by OPEC cartel. The supplies of OPEC and its allied are expected to be controlled at the levels where demand is met even after the decline in the crude inventories. The global production limit is considered to be continued by the OPEC and its allies including Russia beyond the end of the current year and they will schedule the meeting in June to assess the market situation. The compliance rate rose to 85 percent in March for 10 nations out of OPEC that participated in the cuts from the revised 78 percent in February. Crude stockpiles fell probably in the United States by 600,000 barrel and nationwide inventories fell below the average of five years first time since 2014 in March.

In 2017, when OPEC announced its decision that it is extending the 1.8 million barrels’ oil production cut per day until the first 2018’s quarter in order to recover the oil prices, the oil market anticipated the OPEC move and there was no strong impact of this extension on prices of crude oil. This situation was opposite to the surge in prices of commodity witnessed when OPEC deal was announced first in November 2016. WTI prices of crude oil had increased by over 9 percent in November 2016 following the agreement of output reduction initially, as opposed to jumping off just 2 percent in prices of oil when output cuts extension was announced by OPEC. It was indicated by this trend that there is not a significant impact on oil prices by proposed output restriction, moreover, this trend has hinted the fact that power of OPEC is waning to influence the crude oil prices.

The sticky oil prices of Oil in the range of 50 to 55 dollars per barrel, driven by the production cuts of OPEC, shale producers of the United States have reinstated their exploration and drilling plans. The significant rise in the world rig count (gas and oil) had evident it, from 1,678 units to 1,917 units in end of November 2016 and in end of April 2017 respectively. The oil production of the United States, in line with an increased drilling, also rose from 8.7 million barrels a day at the announcement time of deal by OPEC to 9.3 million barrels a day in 2017. It has believed by the experts that the power of OPEC has largely lost to dictate the oil prices despite its significant contribution to global oil supply. The key driver factors of oil prices can be a supply of U.S. shale and economic growth in China.

Conclusion

It is concluded that an exceptional wisdom and fortitude are required to overcome the challenges faced by OPEC. It is yet to regain the boost demand for oil by the world economy at the time when sources of energy are to be diversified. Intensive investment in the production of shale gas especially in the United States might be the primary uncertainty source for the oil market. As far as the endurance’s power of OPEC goes, the Vienna consensus has reached despite the fluctuations in oil prices and the clash between OPEC members. It remains to see that whether the subsequent agreements and Vienna that requires the goodwill of non-OPEC producers as well as OPEC to be accomplished are all that it takes to reverse the oil prices’ downward slide and restore the market order. It has no harm to incorporate some of the forecasts into the OPEC pricing power analysis. However, the impact of all demand and supply factors should be stressed that is dependent on the oil market. Although oil can be said a political commodity, it has multiple economic factors and its prices respond largely in the long run to global economic factors.

References
  • Alessi, C. (2018, February 12). OPEC Revises Crude Supply Forecasts on Higher U.S. Production. Retrieved from https://www.wsj.com/articles/opec-revises-crude-supply-forecasts-on-u-s-production-1518434962
  • Economist, T. (2016, October 1). The little cartel that could. Retrieved from https://www.economist.com/news/finance-and-economics/21707941-opec-agrees-its-first-production-cut-2008-little-cartel-could
  • GulfNews. (2018, April 17). Oil rebounds as Opec signalling deal extension stokes optimism. Retrieved from http://gulfnews.com/business/sectors/markets/oil-rebounds-as-opec-signalling-deal-extension-stokes-optimism-1.2206887
  • Raval, A. (2018, February 12). Opec raises non-cartel production growth forecast for the second month. Retrieved from https://www.ft.com/content/58d4039e-0fe7-11e8-8cb6-b9ccc4c4dbbb
  • Salvaterra, N. (2018, March 12). OPEC’s Clash Over Oil Prices Spills Out Into the Open—Energy Journal. Retrieved from https://blogs.wsj.com/moneybeat/2018/03/12/energy-journal-opecs-clash-over-oil-prices-spills-out-into-the-open/
  • Sider, A., & McFarlane, S. (2018, January 24). U.S. Crude Prices Climb After Data Shows Drop in Supplies. Retrieved from https://www.wsj.com/articles/oil-steadies-ahead-of-u-s-stocks-data-1516792175

Appendix A

OPEC Country wise market share

OPEC Cartel and Oil Prices Fluctuation

Appendix B

Change in forecast plan of OPEC, millions of barrels per day

OPEC Cartel and Oil Prices Fluctuation



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