Suppose that you are trying to determine the after effects of hurricane katrina on the economy of louisiana.
which assumptions could be made to simplify the study?
choose all that apply

1)consider the effects on all of louisiana’s interstate trade partners.

2) determine the effects while holding the infrastructure and factors of production constant.

3)compare the change in prices for all goods

4) track the total net worth of the output produced by the state prior to the hurricane and after the hurricane.

5) focus on just the crawfish and catfish farming industries in louisiana.

The correct answers are 1) consider the effects on all of Louisiana’s interstate trade partners. 2) Determine the effects while holding the infrastructure and factors of production constant. 4) track the total net worth of the output produced by the state prior to the hurricane and after the hurricane.

The assumptions that could be made to simplify the study are "consider the effects on all of Louisiana’s interstate trade partners, determine the effects while holding the infrastructure and factors of production constant, and track the total net worth of the output produced by the state prior to the hurricane and after the hurricane.

After a disaster as Hurricane Katrina and the destruction of the infrastructure and homes in the city of New Orleans, Louisiana, the federal, state and local government, as well as the insurance companies, had to evaluate the damage to start the reconstruction process and the programs that helped the ones in need. If we take into consideration the above assumptions we can easily assess the damage and get a good idea of what is need to be done with correct facts and numbers.

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