The Rising Costs of Terrorism on the Economy

The video discusses the economic impacts of terrorist attacks, focusing on immediate effects on sectors like transport and hospitality, and the government's increased spending on security. It examines short-term economic activities, the role of technology in maintaining business operations, and the potential impacts on the Schengen Agreement. The video also considers the effects on tourism and the broader economic outlook, emphasizing resilience and adaptation in the eurozone.

What sectors are immediately affected by terrorist attacks according to the discussion?

• Technology and Education

• Hospitality and Transport

• Agriculture and Mining

• Healthcare and Pharmaceuticals

How does increased government spending on security and defense impact GDP?

• It decreases GDP

• It temporarily boosts GDP

• It has no impact on GDP

• It permanently boosts GDP

What is a potential long-term effect of increased security spending?

• No effect on the economy

• Long-term negative impact on activity

• Permanent economic growth

• Immediate recession

What role does technology play in maintaining economic activity during partial lockdowns?

• It increases transportation costs

• It allows people to work from home

• It reduces internet connectivity

• It hinders communication

What is the Schengen Agreement primarily concerned with?

• Trade tariffs

• Currency exchange rates

• Environmental regulations

• Open borders and free movement

How has the weaker euro affected tourism expectations for 2016?

• It has led to a tourism boom

• It has had no effect on tourism

• It has decreased tourism expectations

• It has increased tourism expectations

What is the general outlook for the European economy despite recent challenges?

• It is expected to enter a recession

• It is expected to continue growing

• It is expected to stagnate

• It is expected to collapse