Zach Was Working as an Intern for an Investment Company

question 159

Multiple Choice

Zach was working as an intern for an investment company. His office was in the World Trade Center in New York City and his first day on the job was September 11, 2001. Zach survived the terrorist attacks physically unharmed but is now experiencing flashbacks, digestive problems, and he can't seem to have successful personal relationships. Zach's current problems may be a result of:

• A) catastrophic events
• B) major negative events
• C) macrostressors
• D) microstressors

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a given period.

Price Floor

A minimum legal price below which a product cannot be sold; to have an impact, a price floor must be set above the equilibrium price.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Substitution Effect

The economic concept that as prices rise (or incomes decrease), consumers will replace more expensive items with cheaper alternatives, holding utility constant.