Suppose That a Large Tornado Destroys the Fleet of Fire

question 352

Multiple Choice

Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?

• A)The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall.
• B)The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall.
• C)The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.
• D)The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.

---

Definitions:

Government Regulations

Government regulations are legal directives issued by government bodies to control or manage activities within various industries, often for public welfare, safety, or market fairness.

Optimize

This means to make something as effective, perfect, or functional as possible, often through the use of careful analysis and strategies.

Internal Consensus

The agreement reached within an organization or group on a particular decision or issue.

Add Value

The process of enhancing a product or service before offering it to customers, increasing its value and appeal.