POL 2104 Chapter Notes - Chapter 4: Money Supply, Richard Easterlin, Barter
20 Aug 2016
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Document Summary
An economy relies on institutions that allow people to exchange goods and resources with one another. These economic institutions are not easily replaced or changed once constructed. Can become dif cult to imagine something outside the box. The balance between freedom and equality in uences the distribution of wealth within a society, the economic activity that goes on, and the degree of security and prosperity people enjoy. Political economics: the study of how politics and economics are related and how their relationship shapes the balance between freedom and equality. Most fundamental components are markets and property. Markets: the interactions between the forces of supply and demand. They allocate resources through supply and demand. Sellers create products that people need and want. Buyers buy the best goods at the lowest price. Sellers want to dominate a market by offering their goods for the cheapest price (therefore being superior to any alternative)
