Friday
April 18, 2014

Homework Help: Economics

Posted by D on Saturday, November 4, 2006 at 9:28am.

“Prices contribute to the efficient production and distribution of goods and services by embodying vast amounts of knowledge not available to any individual… prices lead to social outcomes that take account of procedures’ costs and consumers’ preferences in ways that no individual planner could plan to accomplish”

Questions:

1.
Outline the various roles played by prices in a market economy.

2.
In what way does the presence of externalities result in price information being “inaccurate”? Illustrate your answer by considering:

3.
The case of research and development expenditures, and

The problem of traffic congestion.


Take a shot, what roll do prices play in the allocation of scarece resources, and how do externalities effect observed prices.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - Ok I REALLY need a hand with this question!! Please!! Thank you!! “...
Economics(micro) - hey, could someone please give me some tips for the following...
Math - Information from a survey on 175 persons about the goods, services and ...
Social Studies - People engage in trade mostly in order to _______ a. have ...
Economics - Why is it that the people responsible for pensions use the CPI as an...
microeconomics - what does ecomomics mean? Economics is a social science that ...
Economics - I learned that price level is the weighted average of prices of all ...
Social Studies - What is one benefit of trade? Prices go up for luxury goods ...
Economics - The Law of Supply (movement along the curve due to the price effect...
US History: FDR - "...nation's impulse to inflate had been the gold standard, ...

Search
Members