Question
A variable that can't be accounted for is
The author backs up the statement that the economy
can be unpredictable by pointing out that
a natural disaster such as a hurricane. As the
result of a hurricane, demand is guaranteed
to increase in a way that could not have been
(A) banking panics occur when confidence in the financial
system is strong.
predicted because the flow of goods into
(B) natural disasters can affect the demand for goods and
disrupt production.
impacted areas is blocked. If crops or power
facilities like oil refineries are damaged, then
C. customers are more willing to buy something when
interest rates are low.
demand is also affected.
(D) inflation occurs when prices for goods and services
decrease too quickly.
A variable that can't be accounted for is | The author backs up the statement that the economy |
can be unpredictable by pointing out that | |
a natural disaster such as a hurricane. As the | result of a hurricane, demand is guaranteed |
to increase in a way that could not have been | (A) banking panics occur when confidence in the financial |
system is strong. | |
predicted because the flow of goods into | (B) natural disasters can affect the demand for goods and |
disrupt production. | |
impacted areas is blocked. If crops or power | |
facilities like oil refineries are damaged, then | C. customers are more willing to buy something when |
interest rates are low. | |
demand is also affected. | (D) inflation occurs when prices for goods and services |
decrease too quickly. |
Ask by Klein Mcfarlane. in the United States
Mar 31,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The correct answer is (B) natural disasters can affect the demand for goods and disrupt production.
Solution
In the provided text, the author discusses how unpredictable events, such as natural disasters, can significantly impact the economy. The focus is on how these events can lead to unexpected changes in demand and supply.
We need to find the statement that supports the idea that natural disasters can affect demand and disrupt production. Let’s evaluate the options:
We need to find the statement that supports the idea that natural disasters can affect demand and disrupt production. Let’s evaluate the options:
-
(A) Banking panics occur when confidence in the financial system is strong.
- This does not relate to natural disasters or their impact on demand.
-
(B) Natural disasters can affect the demand for goods and disrupt production.
- This directly supports the statement about the unpredictability of the economy due to natural disasters.
-
© Customers are more willing to buy something when interest rates are low.
- This is unrelated to natural disasters and their impact on demand.
-
(D) Inflation occurs when prices for goods and services decrease too quickly.
- This does not address the impact of natural disasters on demand.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Extra Insights
In the realm of economics, natural disasters like hurricanes showcase how unforeseen events can drastically alter market dynamics. Not only do they disrupt supply chains, but they also lead to a spike in demand for essential goods. Think about how quickly people rush to buy supplies like water and batteries when a storm is approaching—a perfect example of unpredictable demand!
Furthermore, understanding the impact of such events on economics can prepare us for unforeseen crises. A good technique is to keep an eye on historical patterns after disasters, as they can reveal insights on consumer behavior and demand shifts. Common mistakes include underestimating the resilience of certain markets or assuming that demand will always follow pre-disaster trends, which can lead to significant inventory miscalculations.