ECON 219 Chapter Notes -Egyptian Pyramids, Market System, The Halfway House
4 Jan 2013
School
Department
Course
Professor
10
ECON 219 Full Course Notes
Verified Note
10 documents
Document Summary
Each person in society plays a crucial role. Should in the future no one want to become engineers, or plumbers, or road workers etc the services we need and thrive off of might not be so available. This demonstrates how the world is in a careful balance. Jobs can be carried out by self-interest, social status in under developed nations, or by the whip of authoritarian rule (ex: egyptian pyramids) Market system: each should do what was to his best monetary advantage. A problem of the utilization of knowledge not given to anyone in its totality. All economic activity is in a sense planning The halfway house of the two, delegating planning to organized industries, is know as monopoly. Asymmetric information: moral hazard: one person has the ability to convey cost on other people, adverse selection: high risk buy insurance and low risk do not.
