ECON 2010 Lecture Notes - Lecture 5: Htc, Market Failure, Planned Economy

• School: CU-Boulder
• Department: Economics
• Course: ECON 2010
• Professor: Alexander Hill

Document Summary

Consider the smartphones that you all are currently using. A lot of different components, somebody has to produce the different components, produce the phone, send it, sell it and buy it. Now think of all the different types that consumers want. Imagine one person (or a group) trying to plan all of that. Prices act as an invisible hand, guiding producers to supply what consumers demand. Split in between hunter and gatherer, jobs based on gender and what was needed in the labor force. It allows people to do what they"re good at. It let"s people hold out, and wait for the right job. Yes, they divide work based on talents or age (younger lions are quicker and more agile than the old ones, who run the pack) Because we need goods from others to survive. How to allocate goods and services after specialization.