Question 1

When an economist points out that you and millions of other people are interdependent,he or she is referring to the fact that we all&#10;A)rely upon the government to provide us with the basic necessities of life.&#10;B)rely upon one another for the goods and services we consume.&#10;C)have similar tastes and abilities.&#10;D)are concerned about one another's well-being.

Accepted Answer

The economist is stressing upon the fact that we are all interdependent because we rely on each other for the goods and services we consume. No single person or entity can create everything they need to live comfortably, so they must trade with others, which creates interdependence between individuals and countries, as well as an international trading system. Option A is not correct because while the government may play a role in providing basic necessities, the economist's statement is about interdependence among people. Option C is also not correct because while people may have similar abilities and tastes, that is not the underlying cause of interdependence. Option D is partially correct, but the statement's emphasis is more on the economic interdependence of people.

Question 2

People who provide you with goods and services&#10;A)are acting out of generosity.&#10;B)do so because they get something in return.&#10;C)have chosen not to become interdependent.&#10;D)are required to do so by the government.

Accepted Answer

Generally, people provide goods and services in order to receive something in return, such as payment for the goods or services. This is the basis of the market economy system. While some may act out of generosity, this is not the primary reason for most individuals or businesses to provide goods and services. The other options are less likely, as interdependence is a natural part of society and government requirements vary depending on the specific goods and services being provided.

Deck 3: 0: Sec 30 Mc Interdependence and the Gains From Trade