Economic Impact of Natural Disasters

The CNBC video provides a succinct summary of efforts taken at local levels to address the devastating effects on land especially housing from natural disasters. These natural calamities are occurring not only more frequently, but also taking place for prolonged periods of time. Here are a few newspaper headlines of compelling natural disasters that have impacted the nation in 2021:

1. Heavy Rains and Flooding in Alabama – Dozens of people had to be rescued Wednesday night, Oct. 6^th, in central Alabama, where as much as 13 inches of rain fell, and a south Alabama town temporarily lost its main grocery store when a creek came through the doors of the Piggly Wiggly and heavy rains caused sewage to bubble out of underground pipes near the coast. 
2. Tornadoes in Kentucky – A record 77 deaths have been reported from tornadoes that plowed through the commonwealth late Dec. 10, and into the early hours of Dec. 11. More than 1,000 properties were destroyed.
3. Marshall Fire in Colorado – Fire burned more than 1,000 structures and damaged more than 100 others as it burned through parts of Louisville, Superior and unincorporated Boulder County last month, on Dec. 30. It’s Colorado’s 57th billion-dollar disaster since 1980.

Questions:

1. Based on the CNBC video content, share TWO takeaways you have about the economic impact of natural disasters on housing.
2. Select one of the 3-news listed above and understand the impact of the natural disaster on the State’s production possibilities curve (PPC):
   1. In your drawing, place “Consumption Goods” on the x-axis and “Capital Goods” on the y-axis.
   1. Draw an initial PPC before the event and label it.
   1. Draw another PPC showing the impact of the natural disaster and label it.
   1. Describe the impact of this natural disaster on the State’s PPC.
3. Self-reflection: If you are in the housing market for your 1^st home, how will you factor the information above in your decision-making process? 

Sources: CNBC: Can Homeowners in the U.S. afford climate change? , Pixabay.com: car vehicle damaged moore Oklahoma tornado, USA Today:  Alabama flooding: at least 4 dead, including 1 child; heavy rains swamp roadways and businesses, Louisville Carrier Journal: Kentucky tornado update: What we know after Christmas about relief efforts, death toll, News9: Marshall Fire labeled a billion-dollar disaster by NOAA, The Balance: What is the production possibilities curve in Economics