Political Science 1020E Chapter Notes - Chapter 143-168: Planned Economy, Justice As Fairness, Externality

• School: Western University
• Department: Political Science
• Course: Political Science 1020E
• Professor: Charles Jones

Document Summary

Features of a pure model of a capitalist free market: Property is held by individuals or rms under a secure system of property rights. Goods are distributed by voluntary exchange on a market regulated by supply and demand. Most radical contrast to this is the planned economy: Production is done to satisfy the needs of the citizens. A negative externality is something you get for nothing, but would rather not have (ex: polluted air, noise) A positive externality is something you get for nothing, but are pleased to have (ex: pleasant view) Public goods have positive externalities for all (ex: streetlights) Marxists say the free market is bound to lead to unjust inequalities.