LA VERDAD CHRISTIAN COLLEGE - APALIT

Semester: 1st Semester2017-2018 Given Date: September 19, 2017

MACROECONOMICS BSAT – 3
Course Name: Section:
Assessment: Assignment Submit Date: September 22, 2017
Student Name: Theresa Mahrie S. Gardoce Student ID: 15 – 00203
Total Marks: 30 Marks Awarded
Marks:

Question One ESSAY ____ _____30Marks

Question: Why do people buy guns in a sour economy?

ADDITIONAL APPLICATION: GUN SALES THRIVING IN UNCERTAIN TIMES

Kunkle, Fredrick
“Gun Sales Thriving in Uncertain Times”
Posted 10/26/2008 on MSNBC.com
The Washington Post

Summary: Key Points in the Article

Gun and ammunition sales are up between 10 and 12 percent nationwide for 2008. The increase is
notable since gun sales were already up 20 percent during 2007 over the previous year. Most experts
point to the housing crisis and fear of civil unrest as driving factors for the 2007 increase.

This year the election and the crippled economy appear to be the primary culprits.

Many gun enthusiasts fear that gun sales will be restricted in some manner if Obama gets elected. Most
expect either outright prohibitions on certain items or extremely high taxes that will make the cost
prohibitive. Similar increases in sales occurred during the Clinton administration when several bans were
eventually imposed.

So, while Americans limit their purchases of other goods such as furniture and cars, guns appear to be
on the shopping list. Mandatory FBI background checks bear that out. They are up 9 percent over last
year.

Analyzing the News

The possibility of a very poor economy always creates fear of social unrest. Many people appear to be
coping with that uncertainty by purchasing guns in order to protect themselves if times do get bad. In
addition demand may be driven by election uncertainty and fears that the next political administration
may enact stricter gun laws.

Thinking Critically Questions

1. Why do people buy guns when the economy is doing poorly?
2. Why would the coming election cause people to purchase more guns?
3. Why has the price not increase much in this market?
 LA VERDAD CHRISTIAN COLLEGE - APALIT

Answers:

1. Why do people buy guns when the economy is doing poorly?

People buy guns when the economy is doing poorly because it is possible that having a very
poor economy can make a person afraid to many people who become angry and who acts violently. And
they are also afraid of what will happen in their society in times of crisis. They buy and used guns for
their protection.

2. Why would the coming election cause people to purchase more guns?

The coming election cause people to purchase more guns because many people who are
addicted of buying and using guns are afraid that gun sales will become limited if the President that will
be elected is Obama. And most of them expect that if Obama is elected as the President, it is either He
will not allow selling and buying guns or there will be an additional tax so that the cost will become high
and it causes people to prevent and stop buying guns. And maybe they purchase guns to protect them
on the election.

3. Why has the price not increase much in this market?

The price not increases much in this market because the increase in gun sales became
remarkable during 2007. As for the persons who have knowledge on it, there will be a difficult situation
on how people will live and being afraid of the situation that many people in their country become angry
and hold protests because of the 2007 increase. And maybe because of the people who need it and the
administration before Obama is not that much stricter.