Topics: Supply and demand, Government, Federal government of the United States Pages: 2 (473 words) Published: August 18, 2012
1. No one can predict a natural disaster or world crisis. When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first? Which economic system is the best solution to handling a crisis of epic proportion? (Points : 13) I actually used to hold a 1st Responders certification and that was my first thought, but I thought I would find something more tangible in the book. I know that local governments are supposed to assess and then ask the federal government to step in. I think the Army, FEMA, and quite possibly the CDC are entities that would be sent in to deal with disasters. As far as the economic systems best suited to handling the crisis, I would definitely have said either the socialist or communist. As you said, they make all the decisions anyway, so they’d probably be best prepared for the situations. As Americans, we tend to have too many hands helping out and nothing really getting done. [ (Murphy, 2012) ]

2. What advantages might a socialist system have in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January, 2010? (Points : 13) In a socialist system the education, health care, and child care is already free. The government would already be most likely responsible and/or prepared to serve the needs of those in need. It also states in the book that workers get longer vacations and work fewer hours per week, so the people available to help in cleanup disasters would be plentiful . [ (Nickels, McHugh, & and McHugh, 2010) ] 3. When disasters hit an area, the cost of everything seems to go up immediately: food, water, housing, gas and so forth. Explain why this phenomenon may be a good thing, using the laws of supply and demand to explain your answer. (Points : 13)

When demand is low or quantity is high the seller will usually drop the price to sell the product, but when the demand is high or quantities are short the price will rise. When a...
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