Intro to Business and Technology Essay

710 Words Mar 28th, 2014 3 Pages
Lucia Gibson
Week 1 Homework
Professor Tammy Green
November 3, 2013

1. Which economic system is best suited for handling a crisis of epic proportion (hurricane, flood, blizzard, forest fire, and so forth)? Why?
In my opinion, the economic system best suited for handling a crisis of epic proportion is the free-market capitalistic system. The reason I picked this system over the others is that the government has access to many resources, businesses will give aid, and generally people will do a lot to help.
The government counts on the military and the Coast Guard to perform the rescue efforts and provide security for the people affected. Generally, capitalistic systems have more access to monetary funds to help the
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A good example of this is the socialist country of China. In 2008, the country experienced a strong earthquake that destroyed a good portion of the Sichuan Province leaving many people without homes. It is reported that reconstruction has been completed “in a short period of three years and the lives of most victims have returned to normal” (‘People’s Daily Online’, 2011). This is attributed to the fact that the whole country gave its’ full attention to reconstructing the province and did not stop until everyone’s life was back to normal. 3. Use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter time. Be sure to explain your answer fully.
The law of supply and demand dictates that the if the demand for a product or service increases and the supply remains the same, then a shortage will occur which will drive up the price of that said product or service. With this in mind, we can see why the heating cost rise during winter time. Most of the country experiences very cold winters and most homes or businesses will use some mean to heat up their space whether it is by using more electricity, oil, or natural gas. The increase use will deplete the supply of fuel used to heat the homes and businesses thereby increasing the amount people pay for this service. People will pay different prices depending on which means the use to heat their homes and businesses.

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