SOCB42H3 Lecture Notes - Factor Price, Effective Demand, Biological Engineering

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Published on 22 Nov 2012
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Commercial society; main bulk of most things that most people have are gotten
through trading. Exchange
Money (What are the conditions of exchange)
Tool that allows things to get exchanged effectively
Limits of barter
Money is any commodity that anyone will accept
Abstract quality
a) Lasts
b) Divisible
Resorted to metals; weigh the same, different units, lasts long
Use value vs. exchange value (p41)
Use value; how much you enjoy using it
Exchange value; value you get for exchanging it for something
else
More and more things are being able to be traded
Possible to make more money from trading something than
from using it
Markets (what are the rules of exchange)
Natural price; however much it costs to bring some products to the
market
From 0 to something you can sell to someone else
Includes wages, rent, profit
Real price; amount of labour time in completeness* (marx)
Market price; however much you actually sell something for
Market price and natural price correlate with one another
Change what youre doing
Ramp up money, etc
Effective demand; whether or not their wants are effect (able to
purchase it)
Law of supply; direct relationship between price of the good and the
amount of it that is offered for sale
If price is high, supplier is more willing to sell more of that
product
Law of demand; inverse relationship between price of the good and
the amount of it buyers are willing to purchase
If price is high, no one wants to buy it
If price is low, everyone wants to buy it
Relationship of prices and behavior
Signal sent out by price; changes peoples behaviors
Different coordination occurs
Liberty of motion; people have to be able to go to different places and go into
the industry that is more profitable
Freedom to change jobs; pig business to turkey business
Good information; checking the news
What restricts those ^conditions?
1. Concealing profits
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