Question

Steve buys a new coat from Don's clothing store. Don buys coats from Mary's factory, and Mary buys her material from Sean's mill. The cost of Steve's coat will go up if the workers in Sean's mill get raises. What economic term does this example describe?

a)scarcity
b)interdependence
c)wants and needs

Answer 1

The economic term you're looking for is interdependence, which means the answer is B. 

Answer 2

The answer is: b) interdependence

Economic interdependence refers to the idea that economic system in a country is made up of several divisions that really dependent on each other to continue its operation.

For the example above, Don's clothing might not be directly doing business with sean's mill. But if, sean milll suddenly disappear, Don's clothing would not be able to continue its operation since mary's would not be able to supply enough clothing for Don's.