Question 1

CHAPTER STUDENT ACTIVITY 2 Evaluating the United States Economy SECTION 1 Every society must answer the three key economic questions. The way a society answers those questions reflects its main values and goals. Complete the chart below in relation to the U.S. economy, showing how the three economic questions are related to the five economic goals. (Some answers have been suggested for you.) Then answer the question that follows. Economic Goal of What to Produce? How to Produce it? Who Consumes What Value Is Produced? Efficiency The economy 2. produces goods it can make efficiently and trades for others. Freedom Businesses decide | 3. 4. what to produce. Security 5. 6. Some social programs, such as food stamps and housing subsidies, try to ensure that people will be able to meet basic needs Equity 7. Businesses pay 8. workers what the market will bear. Growth 9. 10. Rising consumer spending helps the economy grow. 11. What are the strengths and weaknesses of the United States economy