McConnell_Brue_Chapter02

What goods and services will be produced 2 how will

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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 are produced? 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...
View Full Document

This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

Ask a homework question - tutors are online