FARE 1040 Study Guide - Quiz Guide: Coase Theorem, Smog, Creation Science

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 1040
• Professor: Fox Glenn C.

Document Summary

He rejects the common definition of economics being the study of the allocation of scarce means among competing ends. Prices are not perfect but they are the only way of learning subjective knowledge. Barnett 1992: many people are aware that society has existing rules, and that it is necessary to follow them. However, few fully understand and appreciate the concepts of why they exist. 3 categories of social problems: knowledge, interest, power. Transaction costs play a crucial role in determining how rights will be used. Coase theorem: an ideal world of zero transaction costs. Answers are not clear unless we know the value of what is obtained, as well as the value of what is sacrificed to obtain it (i pencil) Conclusion: social arrangement induces transaction costs even within the attempt to reduce transaction costs. Pasour (): key issues of the economic calculation debate are closely related to problems inherent in-land use controls .