Georgia Milestones Economic Systems Review

Which of the following is one of Georgia’s four major transportation systems?

• Subway

• Deepwater ports

• Spaceports

• Cable cars

Answer explanation

Georgia's major transportation systems include deepwater ports, which facilitate international trade and shipping. Unlike subways, spaceports, or cable cars, deepwater ports are crucial for the state's economy.

What is the main purpose of a household budget?

• To increase taxes

• To track and manage income and expenses

• To pay more for goods

• To avoid saving money

Answer explanation

The main purpose of a household budget is to track and manage income and expenses, helping individuals make informed financial decisions and maintain control over their finances.

Which Georgia-based business is most closely associated with the entertainment industry?

• Coca-Cola

• Delta Air Lines

• Tyler Perry Studios

• Home Depot

Answer explanation

Tyler Perry Studios is a prominent film and television production company based in Georgia, making it the most closely associated with the entertainment industry compared to Coca-Cola, Delta Air Lines, and Home Depot.

Which transportation system is most likely to be used for international shipping of large quantities of goods from Georgia?

• Interstate highways

• Deepwater ports

• Railroads

• City buses

Answer explanation

Deepwater ports are essential for international shipping of large quantities of goods, as they can accommodate large cargo ships. In contrast, interstate highways and railroads are more suited for domestic transport, while city buses are not used for shipping.

Why do entrepreneurs often take risks when starting a new business?

• To avoid making a profit

• To develop new goods and services

• To increase government spending

• To reduce competition

Answer explanation

Entrepreneurs take risks to develop new goods and services, as innovation is key to creating value and meeting market needs. This drive for innovation often leads to business success and growth.

Which of the following best describes the benefit of saving money?

• It increases debt

• It provides financial security for future needs

• It reduces income

• It eliminates the need for a budget

Answer explanation

Saving money provides financial security for future needs, allowing individuals to handle unexpected expenses and plan for long-term goals, unlike increasing debt or reducing income.

How does the Interstate Highway System support Georgia’s economy?

• By providing scenic routes for tourists only

• By allowing efficient movement of goods and people across the state

• By limiting access to rural areas

• By increasing the cost of transportation

Answer explanation

The Interstate Highway System enhances Georgia's economy by facilitating the efficient movement of goods and people, which is crucial for trade and commerce, rather than just providing scenic routes or limiting access.

A student wants to create a simple budget. Which of the following steps should they take first?

• List all possible expenses

• Determine their total income

• Spend money on entertainment

• Ignore savings

Answer explanation

The first step in creating a budget is to determine total income. This provides a clear understanding of available funds, which is essential before listing expenses or making spending decisions.

How do Georgia’s railroads and deepwater ports work together to support international trade?

• Railroads transport goods to ports for shipping overseas

• Railroads only carry passengers to ports

• Ports are not connected to railroads

• Railroads and ports compete for the same goods

Answer explanation

Georgia’s railroads efficiently transport goods to deepwater ports, facilitating their shipment overseas. This collaboration enhances international trade by ensuring timely delivery of products to global markets.

Which of the following is an example of how profit acts as an incentive for entrepreneurs in Georgia?

• Entrepreneurs avoid starting new businesses to prevent profit

• Entrepreneurs start businesses to earn money from their ideas

• Entrepreneurs only work for non-profit organizations

• Entrepreneurs ignore market demand

Answer explanation

Entrepreneurs start businesses to earn money from their ideas, demonstrating how profit serves as a motivation for them to innovate and take risks in Georgia.