CAS EC 101 Lecture Notes - Xavi, Planned Economy, Feudalism
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CAS EC 101 Full Course Notes
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Suppose the 1st pear gives xavi worth of pleasure, the 2nd, , the 3rd , and the 4th, . If each pear costs . 40, how many pears should xavi buy: 1, 2, 3, 4. With different rules or codes of behaviors. In some places, the economy works like an army: orders are passed down from the top. In other places, the economy is completely decentralized: families run their own businesses any way they want. Some standard examples of economic systems are: But many other economic systems have been described. As a group, economic agents must make a number of important economic choices . In different economic systems these decisions are made in different ways. In the free-market system, most economic activity is voluntary -- induced by economic incentives. Do this and you get what you want. Shanu opens a pizza restaurant (voluntary production) She leases space, buys ovens (voluntary exchange) She hires workers at /hour (voluntary exchange)
