Chapter 3

• Why is interdependence possible in your daily life?


  Because people trade with one another
• What motivates people to provide goods and services?


  They receive something in return
• What does this chapter examine regarding economic interdependence?


  The reasons for economic interdependence
• What is one of the Ten Principles of Economics mentioned?


  Trade can make everyone better off
• What do people gain when they trade with one another?


  Access to a greater variety of goods and services
• What is the purpose of the parable for the modern economy?


  To illustrate why people depend on others for goods and services
• What does the production possibilities frontier illustrate?


  The various mixes of output that an economy can produce