GEOLOGY 002 Lecture Notes - Lecture 3: Logical Consequence, Import Substitution Industrialization, Indifference Curve
Document Summary
Deconstructing the argument for free trade: a case study of the role of economists in policy debates. Economists" view on free trade = more synchronous than on almost any other policy question almost universally support free trade as a policy. = profession has stopped thinking critically about the question and, therefore, makes poor quality arguments justifying their consensus. "let a and b be two possible allocations of resources. This principle states that b must be preferred to a if, starting from b and making lump sum transfers, one can reach an allocation c which dominates a in the pareto sense. Illustration: let"s suppose that by moving from state a to state b, paul is the winner and pierre is the loser. The challenges for free-trade advocates that arise from economic analysis. Free trade affects relative prices which will help some agents within a country, making them winners, and hurt others, making them losers.
