Lesson 3 Section 2

What are the three fundamental economic questions every society must answer?

• What to produce, how to produce, and when to produce?

• What to produce, how to produce, and for whom to produce?

• How to produce, when to produce, and where to produce?

• Who to produce for, when to produce, and how to produce?

Why can't societies produce everything their people might want?

• Because resources are unlimited

• Because resources are limited

• Because people don't want everything

• Because societies don't have the technology

What is one of the main economic choices faced by the people of Vanuatu?

• Whether to invest in technology or education

• Whether to use land for tourism or agriculture

• Whether to produce more cars or more bicycles

• Whether to focus on healthcare or infrastructure

Which of the following is an example of economic freedom?

• The government setting prices for all goods

• Individuals choosing to buy or sell property

• Equal distribution of goods to everyone

• The government providing free healthcare

What does economic efficiency aim to achieve?

• Maximum waste of resources

• Full employment and minimal waste

• Equal distribution of wealth

• High levels of government intervention

What is economic equity concerned with?

• The fair and just distribution of a society's wealth

• The rapid growth of an economy

• The stability of prices over time

• The freedom to make economic decisions

Which economic goal focuses on producing more and better goods and services?

• Economic security

• Economic growth

• Economic stability

• Economic equity

What does economic security aim to provide?

• High levels of economic freedom

• Support for those who cannot provide for themselves

• Equal distribution of all goods

• Rapid technological innovation

What does economic stability ensure?

• Constant changes in prices

• Unpredictable availability of goods

• Predictable availability of goods and services

• High levels of unemployment

Which method of distribution is based on the ability to pay?

• Equal distribution

• First come, first served

• Distribution according to need

• Market-based distribution