PHIL 322 Lecture 17: PHIL-322,University of Arizona,Readings(p17)

• School: University of Arizona
• Department: Philosophy Main
• Course: PHIL 322
• Professor: ALL

Document Summary

Should not raise the price of something just because someone needs it. The best use of the available means is implicit in our assumptions. They are that the marginal rates of substitution between any two commodities or factors must be the same in all their different uses. It is a problem of the utilization of knowledge not given to anyone in its totality. Current disputes with regard to both economic theory and economic policy have their common origin in a misconception about the nature of the economic problem of society. It is a dispute as to whether planning is to be done centrally, by one authority for the whole economic system, or is to be divided among many individuals. Even assuming that this problem can be readily solved, it is only a small part of the wider problem. A body of very important but unorganized knowledge: knowledge of the particular circumstances of time and place.