A tornado that destroys a factory would be consided to be an example of a(n)?

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02-08-2022
Business

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A tornado that destroys a factory would be consided to be an example of a(n)?

Sagot :

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-15T06:41:55-04:00

A tornado that destroys a factory would be consided to be an example of an economic loss.

Tornadoes generally result in significant economic losses that are classified as direct losses or indirect losses.

Direct losses are the result of the destruction of assets and the resulting decrease in value of the asset and/or the lost income as a result of destroyed assets.

Indirect losses relate to the wider impact and include all the loss of production and sales, increased commute times, increased transportation costs, as well as decreased tourist activity.

Despite the economic devastation, tornadoes can act as economic stimuli, through rebuilding efforts, the inflow of insurance money and disaster-relief funds, and improvements in the labor market.

To know more about economic losses here:

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