Specialization and Gains from Trade.doc

1 Page
104 Views
Unlock Document

Department
Political Science
Course
POL S 270
Professor
Anthony Gill
Semester
Winter

Description
Specialization and Gains from Trade Lecture 3 I. Problems with markets: a. There are some things that the public wants but the market doesn’t clear because the supply doesn’t meet the demand (i.e. public goods, CPRs (common pool resources), externalities). b. Competition isn’t always free and fair (i.e. Bernie Maydoff) II. FUNCTIONS OF MONEY a. Means of exchange i. Lowers transaction cost of trade (saves time) and bartering is expensive b. Store of value i. Allows for long-term investment and resources to accumulate; doesn’t depreciate c. Unit of account i. Allows for comparison of value, but not all value III. Rules (coercion) and Institutions are needed to: a. Provide public goods and minimize externalizes b. Keep markets fair and competitive c. Basic efficiency d. …Require: i. Creation (legislature, etc.) ii. Monitoring (judicial system, ensure rule following) iii.
More Less

Related notes for POL S 270

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit