ec-5 - Intro to Money and Banking, Part IV I. Households...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Intro to Money and Banking, Part IV I. Households and firms usually are grouped together because they are private a. Meaning that they are interested in their own benefit b. Each household or firm, when it makes its decisions, it is mostly worried about themselves II. Capitalism a. An economic system in which the property rights over most goods and services are held by private agents (households and firms) III. Socialism a. An economic system in which the property rights over most goods and services are held by public agents (government agencies) IV.We focus on capitalism a. Voluntary exchange i. If people own things, they will not give them up, without compensation (exchanges) ii. If the government can force exchanges (and/or terms) then it is really the owners V. Organization of exchange a. Direct exchange vs. barter (goods for goods exchange) i. A direct exchange must involve barter, but barter can be part of an indirect exchange 1. You could use barter for indirect exchange… ii. Barter exchange
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2011 for the course ECON 200 taught by Professor Staff during the Winter '09 term at Indiana.

Page1 / 3

ec-5 - Intro to Money and Banking, Part IV I. Households...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online