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:

Charter of Rights and Freedoms

A foundational legal document in Canada that guarantees fundamental freedoms and rights to its citizens, ranging from freedom of expression to rights to a fair trial.

Crown Corporations

Government-owned companies or enterprises operated by the state, often to undertake commercial activities.

Married Women

Women who are legally bound in marriage, subject to specific legal rights and responsibilities that may differ based on jurisdiction.

Guarantor

A person, organization, or entity that agrees to be responsible for another's debt or obligations if that individual fails to fulfill them.