Econ Systems

Adam smith's invisible hand refers to the role of:

The market
What is an example of a market?

a starbucks store, a grocery store, ebay
Competition:

A characteristic of a market economy that spreads out economic power between producers, so no one can have total control over prices
What is true about the product market?

Businesses sell goods and services to households
What market interaction takes place: The city of Edina builds a new public park

Product market interaction
What market interaction takes place: Larry purchases a new coat for the winter from Von Maur

Product Market
What are the 3 basic questions?
- What is produced?
- How is it produced
- For whom is it produced?
Scarcity:
- Must be limited in quantity and be desirable
- Have one or more valuable use
Pure Command:
- Government answers the 3 questions
- North Korea
Pure Market:
- People answe 3 questions
- U.S.A

Author

Anonymous

117440

Card Set

Econ Systems

Description

Forster november 16th 2011

Updated

2011-11-17T05:06:51Z

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