The Economy Has Been Compared to a Supertanker on the Ocean

question 7

Multiple Choice

The economy has been compared to a supertanker on the ocean to make the point that

• A)the larger the economy,the less it is influenced by other economies (the weather).
• B)it takes time for a policy change to overcome the economy's momentum and change its direction (as in steering an immense ship).
• C)a random shock affects all parts of the economy in the same way (as all of a ship rises or falls together with the waves).
• D)the larger the economy,the worse it is for the rest of the world when it goes into a recession (there is enough oil in a supertanker for a spill to stretch across the ocean).

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Definitions:

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

Pitch

Refers to the perceived frequency of a sound, determining how "high" or "low" it sounds.

Middle Ear

The air-filled space behind the eardrum that contains the tiny auditory bones responsible for transmitting sound from the outer ear to the inner ear.

Hammer

A tool consisting of a weighted "head" fixed to a long handle, used for driving nails into, or breaking apart, materials.