Imagine a nation discovers a massive source of oil off of its shore that it never knew existed. Imagine that this oil discovery has made the country instantly rich. Now consider your understanding of human nature. How would you expect people to behave once this discovery was revealed to everyone in the country?
Listen to this podcast from NPR, then consider the following questions. Submit answers to Blackboard with your class (Micro) and bonus in the RE section.
1. What would oil drilling companies want to do?
2. What would the government want to do?
3. What would the people want for their own personal condition?
4. What would happen to the balance of economic activity in the country?
5. Describe the impact on wages, prices and costs that this new found wealth would have on the country's markets.