QUESTIONS 1. What was the symbolic significance of a successful terrorist attack on the World Trade Center? 2. Explain the economic significance of the changes in stock market prices illustrated by the graph above. 3. The short-term consequences of the attack appear significant. Do you expect the long-term effects to be as significant? Explain.
QUESTIONS 1. What was the symbolic significance of a successful terrorist attack on the World Trade Center? 2. Explain the economic significance of the changes in stock market prices illustrated by the graph above. 3. The short-term consequences of the attack appear significant. Do you expect the long-term effects to be as significant? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Just answer question 2, analyze the chart above
![B A
The Economics of Terrorism
On 11 September 2001, terrorists
hijacked commercial airliners in
the US and turned them into
weapons
Two of th Assignment 2.jpg hed
into the World Trade Center in
New York City. Of the 50 000
people who worked in the twin
towers each day, an estimated 3000
perished in the attack. The world
will never be the same-politically,
economically, militarily, and
socially-as a result of this attack
on the world's most powerful
nation.
Sept. 17: Stock
prices plunge 684.81
points after trading
resumes following
longest shutdown of
NYC stock exchange
since the Depression.
Sept. 24: Markets
rebound Monday
following stock
markets' worst
week since 1933.
Sept. 21: Dow closes
at post-attack low of
8235.81.
Evidence indicates that the
terrorists planned and executed
their suicide missions carefully.
It appears that their targets were
specifically chosen to cause as
much pain and suffering as possi-
ble, to attack important symbols of
American strength and power, and,
ultimately, to have maximum nega-
tive impact on global economic
systems. Stock markets around the
world experienced a sharp decline
as a result of the attack and its
destabilization of investor confidence.
The recovery was slow and fragile.
Sept. 19: Central banks
pump billions of dollars
in loans into economy
in order to calm panic.
Sept. 28: President
Bush approves
$15-billion bailout of
crippled airline
industry; Air Canada
seeks $4-billion aid
package from Ottawa.
Chapter Goals
QUESTIONS
By the end of this chapter, you will be able to
1. What was the symbolic significance of a successful
terrorist attack on the World Trade Center?
2. Explain the economic significance of the changes
in stock market prices illustrated by the graph above.
3. The short-term consequences of the attack appear
significant. Do you expect the long-term effects to
be as significant? Explain.
• realize the importance of economics as a
social science,
• understand how an economy works,
• begin thinking like an economist,
• use models to explore basic economic
laws and fallacies,
explore career opportunities in the field
of economics.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd07ffb5-13a4-4a86-83ff-1b1e2bdeca3c%2Fda147afc-8cd5-4b4a-8bc6-f944d8f7716a%2Fa2r3uil_processed.png&w=3840&q=75)
Transcribed Image Text:B A
The Economics of Terrorism
On 11 September 2001, terrorists
hijacked commercial airliners in
the US and turned them into
weapons
Two of th Assignment 2.jpg hed
into the World Trade Center in
New York City. Of the 50 000
people who worked in the twin
towers each day, an estimated 3000
perished in the attack. The world
will never be the same-politically,
economically, militarily, and
socially-as a result of this attack
on the world's most powerful
nation.
Sept. 17: Stock
prices plunge 684.81
points after trading
resumes following
longest shutdown of
NYC stock exchange
since the Depression.
Sept. 24: Markets
rebound Monday
following stock
markets' worst
week since 1933.
Sept. 21: Dow closes
at post-attack low of
8235.81.
Evidence indicates that the
terrorists planned and executed
their suicide missions carefully.
It appears that their targets were
specifically chosen to cause as
much pain and suffering as possi-
ble, to attack important symbols of
American strength and power, and,
ultimately, to have maximum nega-
tive impact on global economic
systems. Stock markets around the
world experienced a sharp decline
as a result of the attack and its
destabilization of investor confidence.
The recovery was slow and fragile.
Sept. 19: Central banks
pump billions of dollars
in loans into economy
in order to calm panic.
Sept. 28: President
Bush approves
$15-billion bailout of
crippled airline
industry; Air Canada
seeks $4-billion aid
package from Ottawa.
Chapter Goals
QUESTIONS
By the end of this chapter, you will be able to
1. What was the symbolic significance of a successful
terrorist attack on the World Trade Center?
2. Explain the economic significance of the changes
in stock market prices illustrated by the graph above.
3. The short-term consequences of the attack appear
significant. Do you expect the long-term effects to
be as significant? Explain.
• realize the importance of economics as a
social science,
• understand how an economy works,
• begin thinking like an economist,
• use models to explore basic economic
laws and fallacies,
explore career opportunities in the field
of economics.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education