Download “Answering the Three Economic Questions” Outline

“Answering the Three Economic Questions” Outline
READ THE “ANSWERING THE THREE ECONOMIC QUESTIONS” SECTION OF THE
TEXTBOOK FROM PAGES 23 – 27, FILL OUT THE FOLLOWING OUTLINE, AND EMAIL YOUR WORK TO [email protected] THE DAY BEFORE CLASS. YOU
MUST ALSO PRINT YOUR WORK AND BRING IT TO CLASS.
I.
Three Key Economic Questions
a. What are the three economic questions every society must answer? (23)
i. What must contemporary societies distinguish between when deciding
what goods and services should be produced? (23)
ii. What are our main options when it comes to deciding how goods and
services should be produced? (23)
iii. How do most societies decide how to distribute goods? (24)
1. What are factor payments? (24)
II. Economic Goals and Societal Values
a. What is economic efficiency? (25)
b. What is economic freedom? (25)
i. Are there any limits on this in the U.S.? (25)
c. What is economic security and predictability? (25-26)
i. What is a safety net? (26)
d. What is economic equity? (26)
e. What is innovation? (26)
i. What does innovation have to do with economic growth? (26)
1. How does innovation benefit everyone? (26)
f. What other kinds of economic goals might a society value? (26)
III. Economies and Values
a. What is a traditional economy? (27)
i. What is a benefit to living in this kind of society? (27)
ii. What is a disadvantage to living in this kind of society? (27)
b.
What is a market economy? (27)
c. What is a centrally planned/command economy? (27)
i. Do any countries have this system today? (27)
d. What is a mixed economy? (27)
i. What countries have this system today? (27)