Holt 7525-9 S15_IT

True or False:
___ 1. The basic economic problem is that there is not enough money for everyone to buy
everything that they want.
___ 2. When two parties voluntarily enter into a trade, one party will gain from the trade and the
other party will lose.
___ 3. A nation’s goal for unemployment is to achieve an unemployment rate of zero.
___ 4. A technological advance which destroys jobs is harmful to a nation’s economy.
___ 5. As a nation achieves economic growth, it also will experience more severe pollution.
___ 6. The U.S. economy would grow faster if the government did not allow imports of goods
from other countries into the U.S.
___ 7. When business firms in a competitive market seek to maximize profits, society suffers.
___ 8. The goal for pollution control is usually to achieve a pollution level of zero.
___ 9. Low voter turnout in political elections is caused by people underestimating the
importance of their one vote.
___ 10. Most income redistribution transfers are received by people with income below the
poverty line.
Study Guide for Introduction Chapter
Introduction Chapter Summary
The Jamestown colony was established primarily for economic reasons. The initial colonists in
Jamestown confronted the basic economic problem of scarcity and struggled to produce enough
output to survive. Over time, economic conditions in Colonial America improved, though the
standard of living remained extremely low by modern standards.
Between 1790 and 1860, per capita output increased by fifty percent, primarily due to
improvements in agricultural productivity. Economic growth was disrupted by the terrible loss of
life and destruction of property in the Civil War.
After the Civil War, agricultural and industrial productivity increased, leading to a rising standard
of living. Between 1860 and 1929, per capita output doubled. Economic growth was disrupted by
the Great Depression. During the decade of the 1930s, the unemployment rate averaged 18%.
Since 1929, productivity has grown at an even faster pace than previously, causing per capita
output to more than quintuple. The increasing per capita output caused remarkable improvements
in the quality of life for the average American. Today, the U.S. economy is the largest in the world
and has the highest standard of living of any of the larger national economies.
Questions for Introduction Chapter
Fill-in-the-blanks:
1. ______________________ ______________________ output is a basic measure of
standard of living.
FOR REVIEW ONLY - NOT FOR DISTRIBUTION
A Brief History of U.S. Economic Growth Intro - 6