Economic systems each economy must develop a system

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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.

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