Lesson 7: Cooperation and Exchange
Please read Part III, Chapters 7 - 10

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1. What are the two ways in which cooperation may take place? Give an example of each.    (Part III, Chapter 7) 

2. Give examples of activities which benefit from directed cooperation.   (Part III, Chapter 8) 

3. Why cannot directed cooperation be applied to the total activities of a community?   (Part III, Chapter 8) 

4. What act of cooperation is seen only among human beings?   (Part III, Chapter 9) 

5. Why is it so often assumed that competition is an evil?   (Part III, Chapter 9) and (Competition) 

6. How is the market for unskilled labor an example of perfect competition?   (Competition) 

7. a) List some ways in which competition is commonly reduced in the goods market.   (Competition) 

    b) List some ways in which competition is commonly reduced in the labor market.   (Competition) 

8. a) What is the difference between "desire" and "demand"?

    b) The law of supply and demand follows from what fundamental principle of economic activity?

9. How do we know that production could take place without the aid of capital?   (Part III, Chapter 10) 

10. What is the fallacy in the common assertion that "capital employs labor?"   (Part III, Chapter 10)