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:

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's due to satisfaction with the product and a good experience with the brand.

Conjunctive Rule

A decision rule used in consumer behavior that entails choosing items that meet all of a predetermined set of criteria.

Weighted Additive Rule

This rule is a decision-making strategy where alternatives are evaluated by multiplying each attribute's importance weight by its quantitative value, then summing these products to determine the best option.