econ ch 3

econ ch 3 - Nate Neroni Microeconomics: H Ch. 3 and 4...

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Nate Neroni Microeconomics: H Ch. 3 and 4 Chapter 3 Questions 1. Market system copes with economic scarcity through activities like trade. The command system copes with economic scarcity through a central gov. planning board that would allocate resources fairly evenly. 3. Self interest helps achieve society’s economic goals by delivering something of value to others. There is such a large variety of desired goods in a market system because each person has their own individual wants and needs. They are at the helm of the economy but also commanded by consumers since they are the people who actually make the products and the money, yet they won’t make money unless they conform to society’s demands. 4. The advantages of using capital in the production process are that they allow the work to be much more efficient, less time consuming, and easier. Division of labor is human specialization. Divided into three parts, specialization makes use of differences in ability, specialization fosters learning by doing and specialization saves time. Exchange is necessary in specialization because it allows people to be more efficient producers. 5. Barter entails a coincidence of wants between the buyer and the seller.
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econ ch 3 - Nate Neroni Microeconomics: H Ch. 3 and 4...

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