If the Price of Ice in a Hurricane-Devastated Area Suddenly

question 32

Multiple Choice

If the price of ice in a hurricane-devastated area suddenly skyrockets, then ice suppliers will:

• A) enjoy high profits at the expense of consumers.
• B) limit the supply of ice in the area to sustain the skyrocketing price.
• C) ship more ice to the area and the price will fall.
• D) have an incentive to direct ice to its highest-valued uses.

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Definitions:

Dependency Theory

A theory suggesting that economic disparities between countries are the result of the exploitation of poorer countries by wealthier ones, leading to a state of dependency.

International Telecommunications

The exchange of information over significant distances through electronic means, connecting people and entities across borders.

Technological Progress

The advancement and innovation in technology that leads to new devices, methods, and capabilities, improving efficiency and quality of life.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence among the world's economies, cultures, and populations.