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Reading 1/1:
Price increases are an important means or encouraging as many people as possible to cope as well and as creatively as pussture with natural disasters. True, the rising price or yoous like gasoline can create problems for consumers, particularly the poor. But these drawbacks are negligible compared to the life-threatening shortages that can result when ill-informed public outrage keeps prices artificially low. Even a poor person is better off being able to buy a bottle of water for $10 when the alternative is to have $10 and go thirsty.
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Sen. Senator = A government leader, a politician. America has 100 Senators.
Gasoline = petrol
1) 'Price Gouging after a disaster is good because
A. It upsets the balance between demand and supply.B. It creates problems for the poor during a disaster.
It motivates people to adapt, ensures the allocation of resources, and stabilizes supplies and prices.
D. It proves that Senators' policies reinvigorate the economy.
2) The word "surge" in paragraph 2 probably means
A. Sink
Next Question
B. Crawl C. descend
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D. Rocket
"Mr. Nelson's office declared victory. Economists wept." - You can infer that Economists thought the plan would help undercut the price.
ABCD
Economists totally agreed with Mr. Nelson's decision.
Economists disagreed with Mr. Nelson.Economists thought the decision was rational.
4) Which of the following statements is NOT true about price hikes?. Price hikes encourage supplies to be moved to places that have higher demand.
ABCD A
Price hikes reduce the pressure on supplies.Price hikes help raise public awareness about scarcity.
Price hikes make it more difficult for people to recover from disasters.
5) Artificially low prices...
A. limit artificial shortages.ABreduce both demand and supply.
