What are the benefits of leaving the allocation of country resources to the price mechanism?

Ans) The main conditions needed are:

1. Either a finite number of agents or goods.

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

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

 

Posted Date: 4/1/2013 1:50:51 AM | Location : United States

Ask an Expert

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

Write discussion on Allocation of country resources to the price mechanism
Your posts are moderated

Write your message here..

Related Questions

Complex spreadsheet model, Refine your complex spreadsheet model to improve... Refine your complex spreadsheet model to improve efficiency. a) The user needs to enter at least one of the following contact details: Home Phone, Mobile or E-mail address. If

Different stages of team development, QUESTION (a) What are the differe... QUESTION (a) What are the different stages of team development and elaborate on each of them and explain the importance of each of these stages. (b) The ‘reflective thinking

Leadership, You have been asked to evaluate whether a company''s pay struct... You have been asked to evaluate whether a company''s pay structure is fair to women and minorities. How would you go about answering this question?

Non tariff measures, The last 30 years has witnessed substantial reduction ... The last 30 years has witnessed substantial reduction in the level of tariffs applicable by nations members to the WTO. However, this has also been accompagnied by a rapid prolifer

Outline briefly smart cards, QUESTION a) Explain the whole credit card ... QUESTION a) Explain the whole credit card processing cycle, identifying the different steps and parties involved. b) (i) Outline the main differences between a credit card a

Why businesses are increasingly exposed to criticisms, QUESTION 1 (a) W... QUESTION 1 (a) What can be done at management level to establish and improve an organisation's ethical culture? (b) What are the individual and situational factors that infl

Business Communication, Q6. Explain the different delivery styles that spea... Q6. Explain the different delivery styles that speakers can select for their presentation

Effectiveness of modern organizations, Question 1: "Managing innovation... Question 1: "Managing innovation is a challenge to management...." Peter Drucker How can management effectively manage innovation? Question 2: "Without exception, the d

Risk and Return, In a report not to exceed five double-spaced typewritten p... In a report not to exceed five double-spaced typewritten pages, analyze the results obtained from the three simulations performed, identify the source of the differences, and selec

Point easticity, calculate point elasticity of demand for demand functionq=... calculate point elasticity of demand for demand functionq=10-2p for decrease in price from rs 3 to 2