In 2008, the price of gasoline rose to over $4.00 per gallon, and diesel climbed to more
Question:
In 2008, the price of gasoline rose to over $4.00 per gallon, and diesel climbed to more than $5.00 per gallon. At the same time there was a presidential election in which this development became one of the major issues. The Republicans favored rescinding a ban on offshore drilling for oil in most waters around the United States except for the Gulf of Mexico, while the Democrats largely opposed lifting the moratorium. According to the Federal Energy Information Administration, an estimated 18 billion barrels of oil in the area are covered by the moratorium. What is the opportunity cost to the economy of a decision to prohibit offshore drilling for oil?
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