Unit 3 Test H

Which of the following is one of the three main economic questions every society must answer?

• Where can we allocate specific resources?

• What goods and services should be produced?

• Who can we trade with?

• How should healthcare be used?

What is economic growth?

• Economic growth occurs when a nation's total output of goods or services increases over time

• Economic growth is the increase in government spending within an economy.

• Economic growth is the reduction of inflation rates within an economy

• Economic growth is the decrease in the unemployment rate within an economy.

What are the two reasons for economic growth?

• Scarcity and population

• Globalization and education funding
• Population growth and inflation
• Government intervention and natural disasters

What are increases in productivity in economics?

• Increases in productivity refer to producing the same amount of goods or services using more resources
• Productivity goes up whenever more can be produced with the same amount of resources.

• Increases in productivity refer to producing fewer goods or services using the same amount of resources
• Decreases in productivity refer to producing more goods or services using fewer resources

Why is human capital so important?

• Human capital is only important for personal development.
• Human capital has no impact on economic growth.
• Human capital is irrelevant in the modern world.
• Human capital is the sum of people's skills, abilities, health, knowledge and motivation.

What is specialization?

• When you are really good at making something better than other people

• Avoiding any specific expertise
• Being a jack of all trades
• Generalizing across various fields

What are the four categories that economic systems are categorized as?

• Traditional Economies, Command Economies, Market Economies and Mixed Economies

• Geolocation, Developed Countries, Developing Countries and Underdeveloped Countries

• Primary Industries, Agricultural Economy, Industrial Economy, Service-based Economy

• Feudalism, Mercantilism, Industrial Capitalism, Post-Industrial Capitalism

What are traditional economies?

• Traditional economies are based on modern technology and digital transactions.
• Traditional economies rely heavily on government intervention and regulation.
• Traditional economies prioritize individual profit over community well-being.
• Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it and to whom to distribute it.

What are advantages of a traditional economy?

• Equitable distribution of wealth and resources among all members of society.

• Everyone knows the role they play.

• Offer Individuals a wide range of choices and opportunities for entrepreneurship

• Promote rapid industrialization and technological advancement.

What are disadvantages of a traditional economy?

• Often find it hard to provide for everyone's needs and may not have enough of certain things people need.

• Often experience inefficiency in resource allocation and production.

• Tends to discourage new ideals and new ways of doing things.

• Often lead to income inequality and social stratification.