Allocation of a countrys resources to the price mechanism, Microeconomics

Assignment Help:

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.

Related Discussions:- Allocation of a countrys resources to the price mechanism

Equations, Ask q3x+5=20 uestion #Minimum 100 words accepted#

Ask q3x+5=20 uestion #Minimum 100 words accepted#

Resource markets, Business sell to households in the resource markets, but ...

Business sell to households in the resource markets, but households sell to businesses in the product market

Determines price and output in the long run, Problem 1: (a) Differentia...

Problem 1: (a) Differentiate between positive and negative externalities? Justify your answer using examples. (b) To what extent do government policies influence externali

Sectoral distribution of targeted increase in gdp, MRP Technique- Sectoral ...

MRP Technique- Sectoral Distribution of Targeted Increase in GDP There are two ways of increasing the GDP: (i) Project and accomplish the growth in various sectors through

Arbitrage pricing theory, Arbitrage Pricing Theor y Arbitrage ...

Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another

Slutsky theorem - graphical presentation, Slutsky's Theorem: Graphica...

Slutsky's Theorem: Graphical Presentation We prove here that own price effect is the sum of own substitution effect and income effect for a price change, which is known

Oligopoly, characteristics and models of oligopoly by Sweezy,cournot and ed...

characteristics and models of oligopoly by Sweezy,cournot and edgework

Scitovosky"s double criterion, describe scitovosky''s double criterion

describe scitovosky''s double criterion

Tariffs, effect of tariffs on national income and employment

effect of tariffs on national income and employment

Competitive equilibrium, Let Consider the following insurance market. There...

Let Consider the following insurance market. There are two states of the world, B and G , and two types of consumers, H and L, who have probabilities p H =0.5 and p L

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages