This is one of the question in the my Applied Economics past year paper.
What I can link under the massive undersea earthquake is only a pathetic tragedy. Total death up to 80,000. Linking this tragedy with the economic, what come across my mind only -- scarcity.
Economics is all depends on the production and distribution of goods and services. With the law of supply and demand... bla... blu... bla... haiz.... With my limited economic knowledge, scarcity brings up price raising... den.... where can benifits ler?
Haha....
During times of disaster basic necessities such as clean water and non-perishable food become more relatively scarce, usually because supply sources are destroyed or disabled. As a result, prices rise. The higher prices provide a profit opportunity that induces additional suppliers to rush in the needed goods.
While higher prices would seem to impose further hardship on people in crisis, we must realize, objectively, that they perform an important function in encouraging people to conserve water and food. It's true that those higher prices are another hardship for people dispossessed or out of work because of the disaster - but that's where the money you donated comes in. The higher prices encourage suppliers to make food and water available for purchase. People's donations enable the relief agencies to pay the prices of food and water, which they then donate to the survivors.
saja wuliao..
what is the answer larrr.... ?!
2 comments:
awareness? economically i duno...u should knw better.
Like how different countries channel their fund for supply of the victimized countries?
But this kinda question really shows disrespect to the victim larrr.how dare u guys
ha.. when i first come across that question. stunned. n doubt is it typing error or what. ha~ how could it be vor, that is formal test paper as serious as stpm. haha..
well, maybe.. need study more on the economic journal to get any idea on that.
patient. sure i can google the answer for a day.. :)
Post a Comment