Political Science 1020E Lecture Notes - Lecture 4: Pareto Efficiency, Effective Demand, Externality
28 Dec 2017
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Document Summary
How change happens in the state of nature: free will and 2. Agriculture, metallurgy, property, rules of justice and inequality. Concept: general structure of the value (central idea) Why society cannot be just or unjust: actions, intentions, and agency. Why redistributing wealth in the name of social justice would be wrong anyway: liberty, efficiency. State shouldn"t be aiming to produce particular incomes of wealth & happiness. Four things characterize a pure capitalist free market: Markets, by themselves, don"t always function efficiently (cid:523)don"t simply respond by you didn"t pay or producing it(cid:524) demand, they respond to effective demand) The cost or benefit of producing these goods is externalized (affected by even if. Cost nothing to the consumer who would rather not have then (pollution) Goods with positive externalities cost nothing to consumer, who wants them. Public goods: if provided, benefit all (for example, street lights) Make it illegal (or most costly) to produce some goods with negative externalities.
