Allocation of a countrys resources to the price mechanism, Microeconomics

What are the advantages of leaving the allocation of a countrys resources to the price mechanism?

Ans) The main conditions needed are:

1. Either a finite number of agents or products.

2. No externalities - That is, the consumption of single person should not harm or advantage anyone else.

3. No matter how much a person is consuming, they must be able to be made slightly happier by intense a bit more of something.

Posted Date: 4/1/2013 3:03:25 AM | Location : United States







Related Discussions:- Allocation of a countrys resources to the price mechanism, Assignment Help, Ask Question on Allocation of a countrys resources to the price mechanism, Get Answer, Expert's Help, Allocation of a countrys resources to the price mechanism Discussions

Write discussion on Allocation of a countrys resources to the price mechanism
Your posts are moderated
Related Questions
Defining black economy, If you pay your cleaner or builder in cash or for some reason neglect to tell the taxman which you were paid for a service rendered, you participate in the

The sales of a company are the part of the total sales of industry. If the conditions of industry changes then the sales of each of the firm in the industry is affected. All teh ti

If demand goes down what happens to the equilibrium?

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

INTERNATIONAL MONETARY FUND: The important objectives before the Fund presently are as follows: • To promote international cooperation; • To facilitate the expansion and ba

Functions and Resources of the Bank  The main functions of the Bank are as follows: •  to assist in reconstruction and development of the territories of it member-governmen

how do i use the grid technique to determine the least cost

Potentials of Productivity Growth: It needs to be noted that growth in productivity witnessed in the past are an average rate at the All-India level. There are considerable re


DEMOGRAPHIC PROFILE: A demographic profile of India can be prepared out of the data collected by the office of the Registrar General of India who is the responsible authority