17. Are firms primarily buyers or sellers in the goods and services market? In the labor market?

18. What are the three ways that societies can organize themselves economically?

19. What is globalization? How do you think it might have affected the economy over the past decade?

Critical Thinking Questions

20. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can

produce more meals in a given period of time if each worker specializes in what they do best than if each

worker tries to do everything from appetizer to dessert.

21. Why would division of labor without trade not work?

22. Can you think of any examples of freegoods, that is, goods or services that are not scarce?

23. A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in

the standard of living (for example) is a primary goal. Why do you think that is so?
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