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Unformatted text preview: o Didnt work very well-Tito [Josip Broz] Yugoslavia o Pulled Yugoslavia out of Soviet bloc o Relied on worker managers o Average growth rate exceeded that of the Soviet bloc---Som sees capitalism as having failed. -Capitalist markets fail: o Monopoly Produce less, charge more. Marginal benefit of additional production exceeds marginal cost, yet no more is produced. o Public goods Free rider problem: national defense: cant be efficiently provided o Externalities External costs which are not compensated Positive externality generates benefits (flu shots) Negative externality generates costs (smoking) o Asymmetric If one person does not consume efficiently, the market is hurt o unstable o Unfair First 5 are about efficiency, last is about equity. Freedom depends on wealth. Sots: important principle: everyone shares capital and land equally....
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This note was uploaded on 01/12/2010 for the course ECON 434 taught by Professor Byrns during the Spring '09 term at UNC.
- Spring '09