In 2006, hurricanes damaged many parts of Texas, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these hurricanes are said to have caused
A) scarcity, because the damages made food and shelter scarce.
B) scarcity, because some goods were difficult to get.
C) shortages, because supplies were cut off and goods were destroyed.
D) tradeoffs, because some areas of the country were damaged when others were not.
C
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If the dollar price of a good manufactured in the U.S. is $6 and the dollar price of the same good manufactured in India is $8, should retailers of the good in the U.S. purchase the good from Indian suppliers or from American suppliers?
What will be an ideal response?
The trade deficits of the 1980s and 1990s reflect American desire for foreign
A. assets and foreign desire for American goods and services. B. goods and services and foreign assets. C. goods and services and foreign desire for American assets. D. assets now and foreign goods and services in the future.
An increase in government spending causes:
a. Aggregate supply to rise, which reduces the nation's average price level and increases real GDP. b. Aggregate demand to rise, which increases the nation's average price level and reduces real GDP. c. Always causes the passive deficit to rise. d. Aggregate supply to rise, which reduces the nation's average price level and reduces real GDP. e. Aggregate demand to rise, which increases the nation's average price level and increases real GDP.
A competitive firm maximizes profit at the output level where
a. marginal revenue exceeds marginal cost by the greatest amount. b. marginal revenue is equal to marginal cost. c. average total cost equals marginal cost d. price minus average total cost is the largest.