Handout1-MarketEconomyandIndividualChoice

Handout1-MarketEconomyandIndividualChoice - to lead a...

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Market Economy – The interaction of individual choices subject to community- wide values enforced by decisions of governmental units Outcomes found in a market economy that result from the interaction of individual choices: Mutual exchange (or trade) leads to gains for the parties involved Gains from trade lead to specialization Interaction of individual choice tends
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Unformatted text preview: to lead a market economy toward a condition of equilibrium (i.e. a condition where no individual will make a choice that differs from their current choice they wont be better off doing something different; toward the key phrase, as such a condition is not often achieved; or if it is, it is temporary in nature)...
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This note was uploaded on 10/30/2010 for the course MBA 520 taught by Professor Mr.bill during the Spring '10 term at Ill. Chicago.

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