SISU-240 Chapter Notes - Chapter 5: Economic Equilibrium

• School: American University
• Department: SISU - INT'L SERVICE UNDERGRADUATE
• Course: SISU-240
• Professor: Nathan Paxton

Document Summary

Chapter 5 - markets, stante and social opportunity. Pure market mechanism needs to be partly rejected. We have good reason to buy and sell and seek lives that flourish on the basis of transactions. Women being allowed to work outside the home. Efficiency should be accounted in terms of individual freedoms, not utilities. Market equilibrium guarantees that no one freedom"s can increase any further while maintaining everyone else"s freedom. We can"t rely on the market for everything. Pure transfer (unemployment benefit for example) can have an effect on the incentive system of the economy. These can be a basis for a targeted government intervention.