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Unformatted text preview: ch economy must develop a system, or
particular set of institutional arrangements
and a coordinating mechanism in response to
the economizing problem.
This economics system must address what
goods are produced, how they will be
produced, who gets them once they are
produced, how to accommodate change, and
how to promote technological progress.
Chapter 2 3 Learning Objective 2-1 Take a moment and imagine how challenging the task
of making these choices in a large nation would be for
a group of individuals. The numerous possible
resource combinations available to produce goods and
services are substantially beyond our capacity to
comprehend. One can grasp a much better
understanding of the complexity and sheer magnitude
of the mathematical challenge a social system faces
by reading Last Word: Shuffling the Deck, in the latter
portion of this chapter. The possible combinations do
not number in the billions or trillions, they are truly in a
numerical range beyond our capacity to comprehend
and yet market systems function quite efficiently
through a natural process, making such decisions
automatically. Market systems are trul...
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.
- Spring '09