Consider the one period, competitive equilibrium model discussed in Chapter 5. Suppose that there is a natural disaster that destroys part of the nation’s capital stock. (a) Determine the effects on aggregate output, consumption, employment, and the real wage, with reference to income and substitution effects, and explain your results. (b) Do you think that changes in the capital stock are a likely cause of business cycles?

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

answer; tech (a) is correct;