ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For firms, natural disasters destroy tangible assets such as buildings and equipment – as well as human capital – and thereby deteriorate their production capacity. These adverse impacts may sometimes be fatal to the firms and result in them being forced to close down.

Detailed explanation-2: -There is no single definition of a disaster. From an economic perspective, however, a natural disaster can be defined as a natural event that causes a per-turbation to the functioning of the economic sys-tem, with a significant negative impact on assets, production factors, output, employment, or con-sumption.

Detailed explanation-3: -One measure of the strength of a community’s response and recovery system is its attentiveness to its most vulnerable citizens–children, the frail elderly, the disabled, and the impoverished and disenfranchised.

Detailed explanation-4: -In short, tropical cyclones are the most costly of the weather and climate disasters. Since 1980, the U.S. has sustained at least 341 weather and climate disasters where overall damages/costs reached or exceeded $1 billion (including Consumer Price Index adjustment to 2022).