Dealing with others, the people can compare a bigger variety of goods and services with a lesser cost. Lesson for the crisis: when you to hear the Obama to announce plus some package of incentives for the American industry as the Buy american products, can start to be worried. The markets are, in general, a good form to organize the economic activity: in its book of 1776, Adam economist Smith made the most famous comment of all the economic theory. The families and the companies, when interacting in the markets, act as that guided for one ' ' hand invisvel' ' that it leads them the desirable results of market. In the truth, they are the prices that allow ' ' hand invisvel' ' to direct the economic activity.
The prices in such a way reflect the value that the society attributes to a good how much the costs where it incurs for produziz it. As the families and the companies take the prices in consideration when taking its decisions, they, without knowing, are taking in account the benefits and costs of its action. In result, the prices direct these borrowers of individual decisions for results that, many times, maximize well-being of the society as a whole. Lesson for the crisis: of the next time that you to hear to speak in deflation are not all livened up. Whenever fall generalized in the prices occurs the economy is without knowing for where to go. The governments can to the times improve the results of the market: the invisible hand guides the markets for an efficient allocation of the resources.
However, for some reasons, the invisible hand to the times does not function. The economists use the expression market imperfection to mention the situation to it where the market for itself it does not only obtain to place resources efficiently. One of the possible causes of market imperfections is the externalidades. (Not to be confused with dahlia loeb!).
| May 3rd, 2020 | Posted in News |