{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


lectur6-page10 - Where have all these rules and regulations...

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

View Full Document Right Arrow Icon
10 10 Free Enterprise and Free Choice (An Extension of Property Rights) Assumes there are no artificial restrictions that a government or other producer can put up to block a business's choice in the matter of purchasing its inputs and selling its outputs. Hmm. How does this one stack up when comparing it to what you observe in our economy today? Again, can I purchase some land and other resources, organize those resources as I see fit, and then sell the product of those resources as I see fit? I don’t think so. Any government “red tape” that I have to deal with? Any hoops that I have to jump for government before I get their blessing to go forward?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Where have all these rules and regulations that can stifle free-enterprise come from. Well, again we have to take a closer look. Again, we read, … “as long as their actions do not infringe on the property rights of others.” When a negative externality develops, often government steps in with rules and regulations to mitigate the externality. Those rules and regulations put restrictions on private property rights and can lead to stifling free enterprise and free choice. Society must decide how much erosion of private property rights it can tolerate (cost) relative to reconciling the negative externality (benefit)....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online