the US and turned them into weapons of mass destruction. Two of the air into the World Assignment 2.jpg New York City. Of the 50 000 people who worked in the twin towers each day, an estimated 3000 Sept. 17: Stock perished in the attack. The world prices plunge 684.81 will never be the same-politically, points after trading resumes following Sept. 24: Markets economically, militarily, and longest shutdown of rebound Monday socially-as a result of this attack NYC stock exchange following stock on the world's most powerful since the Depression. markets' worst nation. Sept. 21: Dow closes week since 1933. Evidence indicates that the at post-attack low of terrorists planned and executed 8235.81. 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 Sept. 19: Central banks Sept. 28: President American strength and power, and, pump billions of dollars Bush approves ultimately, to have maximum nega- in loans into economy $15-billion bailout of in order to calm panic. tive impact on global economic crippled airline systems. Stock markets around the industry; Air Canada world experienced a sharp decline seeks $4-billion aid as a result of the attack and its package from Ottawa. destabilization of investor confidence. The recovery was slow and fragile. 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? . realize the importance of economics as a social science, 2. Explain the economic significance of the changes in stock market prices illustrated by the graph above. . understand how an economy works, 3. The short-term consequences of the attack appear . begin thinking like an economist, significant. Do you expect the long-term effects to . use models to explore basic economic be as significant? Explain. laws and fallacies, . explore care