Suppose a Hurricane Causes Extensive Devastation,destroying Houses,roads,schools and Factories

question 142

Multiple Choice

Suppose a hurricane causes extensive devastation,destroying houses,roads,schools and factories.What is the effect of this hurricane on a production possibilities frontier consisting of consumption goods and capital goods?

• A)It shifts outward at all points.
• B)It shifts inward at all points.
• C)There is a movement along the existing production possibilities frontier towards a less capital-intensive point.
• D)There is a movement along the existing production possibilities frontier towards a more capital-intensive point.
• E)There is a movement from the existing production possibilities frontier inwards towards a point with wasted or misallocated resources.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.