Question

section 1
a. key terms and concepts
directions match each item with one of the descriptions below.
____ 1. programs that help people facing hard
economic times a. economic system
____ 2. the way of living that is normal for
a person or community b. income
____ 3. the amount of money a person makes c. innovation
____ 4. people rely on customs to answer
economic questions d. safety net
____ 5. the method used by a society to produce
and distribute goods and services e. standard of living
____ 6. the process of bringing new methods,
products, or ideas into use f. traditional economy

b. main ideas
directions: write the letter of the correct answer in the blank provided.
____ 7. how does a society determine who will get what is produced?
a. by its distribution of income c. by its needs and wants
b. by factor payment amounts d. by economic equity
____ 8. what must a nation’s economy do in order to improve the standard
of living?
a. remain stable c. reach economic equity
b. grow d. allow central planning
____ 9. where are traditional economies usually found?
a. in small communities that welcome change
b. in large communities that welcome change
c. in large communities that are able to deal with environmental
disaster
d. in small communities that avoid change
____ 10. what do people supply in return for factor payments?
a. innovation, profit, or goods c. services, goods, or traditions
b. land, labor, or capital d. innovation, labor, or trade

Explanation:

For part A (matching key terms):

1. "programs that help people facing hard economic times" matches "safety net" (d) as safety nets are social programs to assist those in need.
2. "the way of living that is normal for a person or community" is "standard of living" (e) as it defines the typical lifestyle.
3. "the amount of money a person makes" is "income" (b) which is the earnings of an individual.
4. "people rely on customs to answer economic questions" is "traditional economy" (f) where customs guide economic decisions.
5. "the method used by a society to produce and distribute goods and services" is "economic system" (a) which is the structure for economic activities.
6. "the process of bringing new methods, products, or ideas into use" is "innovation" (c) as innovation involves introducing new things.

For part B (multiple choice):

1. A society determines who gets what is produced by its distribution of income (a) because income distribution affects access to goods/services.
2. To improve standard of living, a nation’s economy must grow (b) as economic growth can lead to more resources and better living conditions.
3. Traditional economies are usually found in small communities that avoid change (d) as they rely on traditional customs and resist change.
4. In return for factor payments, people supply land, labor, or capital (b) as these are the factors of production (land, labor, capital) that earn factor payments.

Answer:

Part A (Matching)

1. d. safety net
2. e. standard of living
3. b. income
4. f. traditional economy
5. a. economic system
6. c. innovation

Part B (Multiple Choice)

1. a. by its distribution of income
2. b. grow
3. d. in small communities that avoid change
4. b. land, labor, or capital