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Economics Discussion Question
One important idea that is part of each of the essays in Miller this week is pricing. Prices reflect scarcity. Are prices working to tell us about scarcity and the value of things for highways, heroin, natural gas, kidneys or water? Why or why not and how bad is it?
In answering the discussion topic, stick to the subject matter. It is about pricing. How would market determined prices provide information about scarcity and where resources should be devoted to highways, kidneys, water, making illegal drugs legal and natural gas. Natural gas is about the only market where scarcity is accurately reflected in its price. How does pricing of natural gas support the use of energy, but in absence of pricing does not allocate kidneys, water and highways well? What does making some drugs illegal do to their prices? Stick to issues surrounding pricing in your discussion question answers.
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