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Reading: Killer Cars and the Rise of the SUV

Here’s the reading due on Tuesday, by start of class:

Killer Cars and Rise of SUV

  1. What are CAFE standards?
  2. What are some differences between cars in the U.S. and cars in Europe?
  3. What is a cartel, and what role does OPEC play in today’s gasoline markets?

25 replies on “Reading: Killer Cars and the Rise of the SUV”

The CAFE standards or Corporate Average Fuel Economy are regulations intended to improve the average fuel economy of cars sold in the US. It is also like fuel economy or your car’s miles per gallon usage.
A lot of cars in the U.S are larger than cars in Europe. Europe has smaller roadways and more people travel by using a bike or public transportation. Cars in the U.S are larger because americans prefer a larger car too.
A cartel is an international group or trust formed especially to regulate prices and output in a field of business. OPEC succeded in raising the price of gas to record highs. So Congress had to regulate gas prices with bills and things like the CAFE. OPEC also can control gas prices by either increasing or decreasing the amount of oil available. If the amount available goes down, the prices can go up. This is the law of supply and demand.

1. CAFE standards require that each auto manufacturer’s passenger cars sold in this country meet a federally mandated fuel economy standard. The CAFE standards are less stringent on light trucks than cars.
2. European cars must meet both standards so you can’t just import fuel efficient cars to the U.S. and try to bring up the average mileage of their domestic cars. We must make more smaller cars in the U.S. to help protect the jobs of domestic autoworkers.
3. A cartel is an international trust formed to regulate prices. OPEC had succeeded in raising gasoline and petroleum prices to record-high levels.

The CAFE requires that each auto manufacturer’s passenger cars sold in this country meet a federally mandated fuel economy standard. In 2007, the CAFÉ standard for cars was 27.5 mpg. Also, for trucks and SUV’s, the standard must be above 22.5 mpg.

In Europe, compared to in the United States, they sell more pedestrian cars with high gas mileage’ while the United States produces more trucks, SUVs and vans that get a much lower mile per gallon gas consumption rate.

A cartel is an organization of producers and consumers that meet to talk about setting a set price and amount of the good that is to be produced. Today, OPEC is a major part of the price of gasoline because they set the global price for gas, since the produce the majority of it. Also, they can ship it to countries around the world that pay a large price for it.

CAFE has a few standards. A few if these standards include cars sold in this country meet a federally mandated fuel economy standard, such as cars made in the year 2007 having to be 27.5 mpg in gasoline. Though there are differences between American and European cars, CAFE treats domestic and imported cars the same. Manufacturers must make imported cars the same, so they don’t import fuel-efficient cars & increase the average mileage of domesitc cars. Which is why, instead the domestic cars are built smaller. A cartel is a coalition that come together with a common cause, such as regulating prices. OPEC is the cartel of major oil supplying countries, and they have the power to increase prices of petroleum products (gas included).

1. The standards of CAFE are some of the few laws set to mandate energy conservation. The supposed purpose of CAFE standards and laws is for saving fuel economy and environmental protection. The CAFE standards state how many miles per gallon a car should be able to use and if a car manufacturer makes a car that doesn’t reach this standard, then they are fined significantly.Also, another example, is that CAFE standards require that automobiles be produced with specific materials in a much more expensive method so that they can be more energy efficient and use less gas. In this way, less money is spent by the consumer on gas and more money is spread throughout the market. However, a lot of people see that in order to obide by the CAFE standards, it’s actually more expensive and dangerous than if these standards were to be discarded.
2. Cars in the United States are subject to following the CAFE standards or sufferring great losses and paying the government a sufficient amount of fines. However, imported cars are treated separately, and cars in Europe can’t just be imported into the United States to bring own a United States-founded car manufacturer’s mileage. CAFE did this to protect the jobs of autoworkers in the United States. So, cars in Europe are most likely not meeting a lot of the standards made by CAFE since they do not have to.
3. A cartel is a formal agreement among competeing firms. OPEC is a cartel formed between countries exporting petroleum while some of these countries, such as the United States, were in the middle of an energy crisis. OPEC establishes the price at which gas will be sold in each particular area of the world and basically decides in which direction the prices of gas and petroleum will go.

1) CAFE’s standard is each passenger car sold in the United States must meet a federally mandated fuel economy standard. Also, for every .1 mpg a corporation falls short of this standard they are fined $5.
2) Cars in the US are much larger and aren’t as gas efficient as cars in Europe and we now have CAFE to protect American car dealers.
3) A cartel is a combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members. OPEC’s role today is to regulate the price of gas/petroleum today.

1. CAFE standards say that the average fuel economy of the entire fleet of cars sold by a company must be 27.5 miles per gallon. If the company’s average is worse than 27.5 mpg, the automakes is fined $5 per car for each 0.1 mpg it falls short.
2. Some differences between cars in the U.S. and cars in Europe is that the driver’s seat is on the opposite side, therefore they drive on the opposite side of the road. Also, we import a lot of the cars we buy and sell from over seas and places like Europe.
3. A cartel is a trust made to regulate prices and output. It made gasoline less expensive at first, but since, gas prices have risen again.

1. CAFE standards are that each auto manufacturer’ passenger cars sold in this country meet a federally mandated fuel economy standard. From the reading for example, if the company’s average fuel economy is worse than 27.5 mpg (set in 2007), the automaker is fined $5 per car for each 0.1 mpg it falls short.
2. I feel like we have a whole variety of cars to choose from in the U.S. than in Europe. We have many models and types of car: we have minivans, SUV’s, trucks, and crossovers. Personally being to Europe before, I noticed that SUV’s, trucks, and vans are not popular. They’re actually rarely seen being driven. Europeans drive the small cars, especially the fuel efficient cars, and most of them only seat two people. Like the reading says, cars are trying to be more fuel efficient, which results in smaller and lighter cars, which I think car manufactures in Europe are all about. Gas prices in Europe are really high, and even though the point of car manufactures is for them to make money, they want people to buy their products. They’ll achieve this by helping the consumers save money at the gas pump.
3. A cartel is a combination of independent commercial or industrial enterprises designed to limit competition or fix prices. OPEC has the record of sky-rocketing the prices of petroleum products, including gasoline back in the 70’s. Since then, prices have fluctuated, both up and down. They help set prices for gas, and depending on them is what people pay at the pump. If prices are too high, consumers cut back and therefore a loss of money for these companies. They help find the happy medium between consumers buying the product for as cheap as they can, and companies selling it so they’re happy making money.

1. CAFE standards are laws that are set to madate energy conservation. The purpose of CAFE standards is for saving fuel economy and environmental protection. CAFE standards say that automobiles must be produced with specific materials in a much more expensive method so that they can be more energy efficient and use less gas.
2. Cars in the United States are have following the CAFE standards or suffer losses and paying the government a large amount of fines. Cars in Europe are most likely not meeting a lot of the standards made by CAFE since they do not have to.
3. A cartel is a formal agreement among competeing firms. OPEC is a cartel between countries that are exporting petroleum while some of these countries were in the middle of an energy crisis. It establishes the price that gas will be sold in each speciffic area around world and decides in which direction the prices of gas and petroleum will go.

CAFE standards say that automakers must produce different vehicles that have a fuel economies that average a certain amount. And what it does is helps to hold automakers accountable for wasting energy, money, and harming the environment by hurting them where it hurts most, their wallets. Cars built in the U.S. are smaller than European cars, because it’s better for the economy to have the more fuel efficient cars made in the U.S. so people can buy them and U.S. citizens can have more jobs here. Cartels are organizations comprised of smaller organizations that are essentially in control of certain industries or products. In today’s gasoline market, OPEC controls the oil, and the prices and exports of it. They are in control of the oil industry, and they’re not American, so our government can’t do anything about it.

CAFE standards are levels that were set by Congress that the car companies had to have their cars reach in how many miles per gallon each car could use. The CAFE standards started with 19.9 mpg as the minimum amount that a car could use. Cars in the U.S. are bigger users of gasoline, our cars get less miles per gallon and U.S. made cars tend to be slightely larger the European cars. A cartel is a group of companies that regulate prices and other aspects of a good. OPEC plays a large role in today’s gasoline market by being the cartel that influences all of our gasoline prices. They pretty much set the cost of barrells of oil, which in turn influences the price we pay for our gas. They are the reason Congress made the CAFE standards and that SUV’s and light trucks are now driven so much by Americans.

The standards of the CAFE is how many miles per gallon a car should have. If a car company produces a car that doesnt make the CAFE standards they are fined. CAFE also has standards of what the car can be made out of. Pretty much the standards help saving gas and help the enviorment.

Car manufactored in Europe and cars manufactored in United states are treated differently when coming to CAFE standards. Cars in the united stats are forced to pay the government because they dont meet the CAFE standards, on the other hand Europe cant import cars without heavy fines. European cars do not have to meet CAFE standards.

Cartels are a formal agreement between competeing firms. OPEC is a cartel between countries that want oil. They set the standards for what oil to be sold for. They control the whole oil trade and gas prices.

1.)Corporate average fuel economy. They state that each auto manufacturer’s passanger cars sold in this country meet a federally mandated fuel economy standard.
2.)New cars in the U.S. have a minimum of 27 miles per gallon if the dealers want to sell them.Also, people in the United States gravitate toward big SUV’s, even though it wastes a lot more gas. Cars in Europe that people use are generally smaller and more efficient.
3.) A cartel is when a group of firms gets together to make output and price decisions. OPEC has raised petroleum products to record high levels.

Some of the CAFE standards force automakers to make cars 500 pounds lighter then the usually would be. It also says that cars have to have a specified fuel economy standard. A cartel is an international combine or trust formed to regulate prices and output in some field of business. It helps raise gas prices of petroleum to record high levels. They also send gas prices into free fall. Cars in the United States tend to be a lot smaller then cars made in Europe.

(CAFE) standards requires that each auto manufacture’s passengers cars sold in the country must meet a federal mandated economic standard. If these standards are not met they can have a penalties up to about $200 million per year. A cartel is a formal explicit agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an monopolistic industry. European cars are usually built smaller then American manufactures. European cars are built to last longer then American cars and to get better millage. American cars are not built on looks and European cars are built more for their looks.

1)CAFE says that an auto manufacturing company has to have an average mpg of 727.5. Ifthey make a car with a smaller amount, the they need to make a car with more. A company is charged $5 per car per .1 that they are off. (can be around 2 mill)

2)Cars in Europe are significantly smaller. Many people se public transprotation. If they do have a car, it is usualy very small, light, and good on gas because gas isvery expensive in Europe.

3) a cratel is: a trust formed to regulate prices and/or output. OPEC controls much of todays gas and petrolium prices.

CAFE Standards are rules the mandate a certain fuel economy for cars. US cars are much larger and less efficient than european cars. A cartel is a group of suppliers, and today they regulate prices

1)CAFE standards require that each auto manufacturer’s passenger cars sold in this country meet a federally mandated fuel economy standard. This means that cars made hadd to average at least 25 miles per gallon (whatever number they chose to use.)
2)To meet the standards of the OPEC the automakers have begun to use car parts that are more costly and that are more eaily damaged in accidents and cost more to repair in the US.
3)A cartel is an association of manufacturers or suppliers that maintains prices at a high level and restricts competition. TOday the OPEC has standards on cars for 27.5 miles per gallon. Lighter vehicles such as pick up trucks and vans and SUV’s have been lowered to 22.5 miles per gallon.

The CAFE standard requires that each auto manufacturer’s passenger cars sold in the United States meet a fedcerally mandated fuel economy standard.

Some differences between the cars in the United States and the cars in Europe are that there are more cars in the United States because there is more public transportation available in Europe. Also in Europe the people there drive smaller, more efficient cars compared to the Americans who prefer the bigger SUVS.

A cartel is a group of business firms. OPEC plays a big role in today’s gasoline markets because they decide what the price for a barrel of oil is going to be and that impacts what the price of gas is going to be.

1. The standards of CAFE are some laws that are to approve energy conservation. The standards state how many miles per gallon a car should use as well as if a car doesn’t reach the standards, then the manufacturer is fines.The purpose of these standards is to save fuel and protect our enviroment.

2. The differences between cars in the U.S and cars from Europe can be seen as great and not. Cars in the U.S. are to follow the CAFE standards, if requirements aren’t met then there would be a ton of fines. Also, they can’t just bring a car from Europe to U.S. CAFE did this to protect jobs of autoworkers in U.S. Cars in Europe, don’t have as many standards as car in U.S. do.

3. A carter is a formal agreement between competing firms. OPEC is a cartel which is between countries exporting petroleum. They establish the price at which gas should be sold in a specific area of the world.

When a Gas tank goes over a certain amount in the gas tank,more cars in Europe go faster, when they put oil in a container to put over to the USA. Gas and oil company

1. The CAFE standards is when the gas cant go over a certain amount of gas.
2. In Europe they have more types of cars in Europe than in the United States. They also go a lot faster than United States cars.
3.A cartel is something that holds oil in it when shipped over the United States. They control how much oil is coming over and how much is needed every where in the world.

CAFE is a law that resticts the price of gasoline from going any higher.
Many Europian cars are more economic and most Eurpian cars go faster and sometimes use a smaller engine.
Cartel is when they only send oil to a certain place, like what they got. OPEC controls all of oil production and selling

1. That manufacturers must produce cars that meet certain fuel economy standards.

2. Some of the differences are they use different manufactoring techniques to make the cars.

3. A cartel is a major factor. OPEC plays a part today by controlling an regulating all the oil exported.

1.) CAFE standards are a set of rules that car companies must follow. These standards were made in the 1970’s becuase of gas scarcity. CAFE standards require that each auto manufacturer’s cars sold in the country must meet a federally mandated fuel rate. If the average mileage on the cars do not meet this standard, then a fine of $5 per car, per .1 mpg, will be implemented. For example, if General Motors fail to meet the standards but 1 mpg, they could be subject to penalties of over $200 million yearly.

2.) Our country has switched over from small cars to small trucks and SUV’s over the years, unlike in Europe will small cars are still dominant.

3.) A cartel is a seller or carrier of goods. OPEC raises and lowers the prices of petrolium products so they play a big role in our economy.

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