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Unformatted text preview: d?
2. How will the goods and services be produced (or
what combination of resources will be used)?
3. Who will get the goods and services once they
4. How will the system accommodate change?
5. How will the system promote progress?
Over the following several slides, we will examine how
market system responds to each question. I believe
our observations should shed more light for us
regarding exactly how phenomenal a market system
truly tends to be. What goods will be produced? Market systems
address this question automatically since producers in
the market will provide the goods consumers wish to
purchase. Consumers approach their purchasing
decisions with sovereignty (independence of action
and thought) and vote with their dollars. These dollar
votes result in the mix of goods and services that will
be made available.
In the event there are more dollars chasing some
goods than others, producers recognize that
consumers desire to own more of the most popular
good and increase production accordingly.
Alternatively, when goods go begging for...
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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