Unit 3 Study Guide

Environmental Issues What causes air pollution? What effects does it have? What causes acid rain? What does it do? What happened in Chernobyl in 1986? What is that area like today?

Productive Resources What are the 3 types of productive resources? What is a natural resource? Give an example o Why is it good for a country to have lots of natural resources?

What is a human resource? Give an example What is a capital resource? Give an example What is scarcity? How can you tell if one thing is more scarce than another?

Economic Systems What are the three economic questions every country must decide how to answer? What economic system is the most old-fashioned? What does barter mean? Which economic system allows private citizens to make all the economic decisions (What to produce, how to produce it, who to produce it for?) Which economic system has the least freedom and government makes every economic decision? Which economic system is a combination of the other three economic systems? Why do we say that every country is a mixed economy?

Trade Barriers What is a tariff? o Which organization got rid of tariffs for its members?

What is a quota? What is an embargo? o Why might a country use an embargo?

What do trade barriers do to world trade?

Currency What is currency? GDP What is currency exchange? Why do countries need currency exchanges? Give me three examples of currency:

What does GDP stand for? What is gross domestic product? Does a country want a high or low GDP? Why? What is per capita GDP? How can you find out a countrys per capita GDP? How can you raise your countrys GDP?

Human Capital and Capital Goods What is human capital? o List two ways you can invest in human capital to improve it:

What are capital goods? o List two ways you can invest in capital goods to improve them:

Entrepreneurship What is an entrepreneur? Why are entrepreneurs important? What do entrepreneurs bring together to create a business? Give me 3 examples of entrepreneurs: