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ID: 1251194 • Letter: Q
Question
Quick answers ( accurate answers ) needed for this College Economics.
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1) Which is necessary to make a trade in a barter economy?
A) Money
B) Unlimited wants
C) A medium of exchange
D) A coincidence of wants
2) Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert?
3) How do the different economic systems (capitalism and socialism) differ in the way they answer these three questions – What to Produce? How to Produce? and For Whom to Produce?
Explanation / Answer
1. c 2. She lost two days of work at 300 dollars and the flight and concert cost her another 300 dollars so the whole trip really cost here 600 dollars. 300+250+50=600 dollars. 3. Capitalism is an economic system based upon private property and the market in which, in principle, individuals decide how, what, and for whom to produce. Under capitalism individuals are encouraged to follow their own self-interest, while market forces of supply and demand are relied upon to coordinate those individual pursuits. Government must allocate and defend private property rights - the control a private individual or firm has over and asset or a right. Markets work through a system of rewards and payments. Individuals are free to do whatever they want as long as it is legal. Fluctuations in prices coordinate individuals' wants. The primary debate among economists is not about using markets; it is about how markets should be structured, and whether they should be modified and adjusted by government regulation. Socialism is, in theory, an economic system based on individuals' good will toward others, not on their own self-interest; in principle, society decides what, how, and for whom to produce.
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