Describe the economic impact of the development of terrorism.(1 point) Responses Increased investment in security measures and defense spending, leading to higher government expenditures. Increased investment in security measures and defense spending, leading to higher government expenditures. Disruption of industries such as tourism, transportation, and finance, resulting in loss of revenue and job opportunities. Disruption of industries such as tourism, transportation, and finance, resulting in loss of revenue and job opportunities. Growth of the defense industry and expansion of surveillance technologies, boosting certain sectors of the economy. Growth of the defense industry and expansion of surveillance technologies, boosting certain sectors of the economy. Introduction of insurance policies and risk assessment strategies, contributing to rising costs for businesses and consumers.
Introduction of insurance policies and risk assessment strategies, contributing to rising costs for businesses and consumers. Decreased consumer confidence and investor uncertainty, leading to market volatility and reduced economic growth. Decreased consumer confidence and investor uncertainty, leading to market volatility and reduced economic growth. Increase in government borrowing to finance counter-terrorism efforts, potentially leading to higher taxes or inflation. Increase in government borrowing to finance counter-terrorism efforts, potentially leading to higher taxes or inflation. Overall, the development of terrorism can have significant negative economic impacts on both national and global economies.
