Tuesday, 11 September 2012

economic systems

the economic problem - scarcity of resources in the face of unlimited wants leads to the need for choice and the experience of opportunity cost,  Economic systems are choice mechanisms:

free market - price mechanism based solutions where price signals changing conditions, rations scarce factors and goods and incentives producers



the road to selfdon - hayek

command systems - planning mechanisms decide on the allocation of resources and the availability of goods - price is set and excess demand takes on a physical form in the shape of queues.  Focus is on quantity rather than quality targets

inside north korea (newsnight 15 mins)








the heritage foundation


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