Unit 3 Our Economy Chapter Review Key Terms Checklist Using a pencil, place a ¸ in each box to indicate how well you
know and understand each Key Term. q I know and understand this Key Term.
q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet.
When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2. 3. 4.
Sustainability refers to the ability to continue a particular behaviour or policy choice indefinitely.
Financial sustainability refers to the government’s ability to afford to fund a particular policy choice indefinitely.
Social sustainability refers to the willingness of a society to support a policy.
q q q q q q q q q
Environmental sustainability refers to the ability of nature and the planet to support particular behaviour or policy choices indefinitely without being damaged.
Key Concepts
1. What questions need to be asked in order to evaluate an economic policy?
2. What is the difference between social sustainability and environmental sustainability?
Critical Thinking Skills
1. As part of a health promotion initiative and to reduce healthcare costs, the government is proposing to increase the tax on cigarettes. This will lead to a doubling of prices for consumers and is expected to lead to a significant reduction in the consumption of cigarettes.
(a) Using a demand and a supply curve, illustrate what effect this initiative could have on the supply and demand for cigarettes.
(b) Who is likely to benefit from this policy? (c) Who is likely to pay for this policy?
