ECON 1201 Lecture 5: ECON 1201 , Lecture 5 , Prices
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Document Summary
Natural - unique attributes, resources, skills, abilities that arise without. Artificial - legal rules and government imposed limitations making a good or service relatively scarce. People react in predictable ways to price changes, and thus the prices are coordinating our actions independently. Markets are socially constructed and reflect the cultural and ethical values of a society. Boundary regulation - regulation that defines the market and regulates the entry. Commercial banks were separate from investment banks. Defining the minimum or requisite quality requirements or dimensions of a good. For markets to work or work well , private property rights must be well defined and protected.
