Page 90 - Business Principles and Management

C HAPTER 3 A SSESSMENT

APPLY WHAT YOU KNOW

21. Describe how an economic want differs from a noneconomic want.
Give an example of each.
22. Compare capitalism, socialism, and communism as to (a) how each
allocates scarce resources among alternative wants and (b) the exis-
tence of private property.
23. Describe how form, place, and time utility apply to a small pizza
business that just opened in your community.
24. Discuss why the following statement might be true: Economic deci-
sions in a capitalist country are influenced by the federal government
about 10 percent of the time; in a socialist country about 50 percent
of the time; and in a communist country about 90 percent of the
time.
25. Compare the three basic economic systems in terms of the economic
opportunities available to businesses.

MAKE CONNECTIONS

26. Research Use your school library or the Internet to research the
Great Depression. Identify the causes and the impact of the
Great Depression on the economy of the United States. List
the strategies that were used to move the U.S. economy out of
the Great Depression.
27. Math Use the Consumer Price Index information provided in
Figure 3-4 to determine the following.
a. What was the percentage of increase between 1983 and 1998?
b. What was the percentage of increase between 1998 and 2006?
c. If the percentage of increase between 1983 and 2006 remains
the same between 2006 and 2029, what will the CPI be
in 2029?
28. Technology Use presentation software such as PowerPoint to show
how a variety of technology tools are being used to increase labor
productivity. Be specific with your examples.
29. Speaking Develop an argument in favor of or against one type of eco-
nomic system outlined in the chapter. Relate your arguments to
other points brought up in the chapter such as how economic wants
are met, how utility is decided, how factors of production are dis-
tributed, and how capital is formed. Find someone in the class who
has chosen a different economic system and debate the advantages
and disadvantages of each system.
30. Writing Assume you are working for a politician who is running for
office based on increasing economic growth in the United States.
Write a speech indicating how the United States can obtain eco-
nomic growth and what specifically the politician will do to create
this growth.

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