Reading and Note Taking Study Guide

Lesson 2.1 The Three Key Economic Questions

Key Terms economic system factor payment profit safety net standard of living innovation traditional economy

Academic Vocabulary Equity: fairness Prioritize: arrange in order of importance

Lesson Objectives 1. Identify the three basic economic questions that all societies must answer. 2. Describe the economic goals that determine how a society answers the three economic questions. 3. Define the characteristics of a traditional economy.

Three Basic Economic Questions: Reading 1. Categorize As you read "Three Basic Economic Questions," use this graphic organizer to list the three questions and provide at least two examples that illustrate each. The examples need not come from the lesson.

2. Vocabulary: Use Context Clues Under “Who Consumes the Goods and Services That Are Produced,” use context clues to come up with a definition of the word values.

Economic Goals of Society: Reading 3. Draw Inferences How does the introduction of robots into an automobile factory illustrate the economic goal of efficiency?

4. Draw Conclusions A key innovation during the Industrial Revolution was the steam engine. How did the steam engine contribute to the growth of the textile, or cloth-making, industry?

2 5. Explain an Argument In a society that favors economic equity over economic freedom, who would benefit? Explain.

Traditional Economies: Reading 6. Distinguish Among Fact, Opinion, and Reasoned Judgment People in societies with traditional economies tend to rely on established technologies, have access to limited goods, and lack modern conveniences, but they love what they do for work. What part of the preceding statement is an opinion? Explain your answer.

7. Cite Evidence Which is the more important economic goal for society in a traditional economy, equity or growth? Cite evidence to support your answer.