Chapter 8 Review

Match the corresponding letter for each term with the correct definition.

• values

• consequences that may not be felt or seen until years or decades later

• future consequences

• consequences that are felt and seen immediately

• present consequences

• a thing that is regarded as more important than alternatives

• collective economic choice

• when people made a choice together as a society

• priorities

• one's judgment, principles, or standards of behavior

Which examples are present consequences of an economic choice? (Choose 2)

• Someone pays less money for an imported item.

• A person's family life improves with the purchase of an item.

• Five years from now, there will be enough money saved to go to college.

• A local supplier goes out of business because people have bought more imports.

A manufacturing business invests in new technology and staff training today. Which examples describe possible future consequences of this economic choice? (Choose 2)

• A. Employees are excited that they get to learn new skills.

• B. Business profits increase every year for the next five years.

• C. The company develops a reputation as a great place to work.

• D. The business has less money to spend and must cut its advertising budget.

Which two statements describe the economic choices made by individuals and societies?

• They differ.

• They are relative.

• They are identical.

• They are transitional.

• They remain the same.

Put each statement into the correct category if the statement describes a future or present consequence.

Groups:

(a) Present Consequence

,

(b) Future Consequence

• buying a car made in the United States saves money

• a local import dealership benefits when I purchase an import car from them

• Spending less on the car made in the U.S. will free up money for buying a house in 5 years

• if the trend to purchase imports continues, it will eventually hurt car plants in the U.S.

Values and priorities often determine (a)   .

• individual choices

• societal choices

Shared cultural values or government actions often determine (a)   .

• individual choices

• societal choices

What present economic consequences might India face after deciding to build new roads and airports?

• The trucking industry is flourishing, because travel is now faster and easier.

• Construction companies benefit from building new airports and roads for the government.

• Because of the new airports, Indian Airlines is expecting to be the best Asian airline by 2020.

• Disease becomes a problem in five years because the government had limited funds to spend on public healthcare.

Which possible future consequences could result from India’s decision to build new roads and airports?

• Airports see a decline in the number of passengers.

• New towns are created along the routes of improved highways.

• India’s passenger railroad fails because more people are traveling by car.

• As goods are easily transported across land to port cities, India sees a huge jump in its shipping industries and exports.

• It is projected that by 2019, air pollution will be a much bigger problem because of increased emissions from cars, trucks, and jets.