Hope of matching efficiency of competitive pricing system

Assignment Help Business Economics

Reference no: EM131094538

According to Hayek, a social planner has no hope of matching the efficiency of a competitive pricing system because

a. no social planner can be completely benevolent in his actions.

b. a social planner cannot have access to the specialized knowledge of individuals.

c. the social planner will be unable to fully monitor the activities of his agents.

d. people are selfish and will not be actively altruistic to the social planner.

Reference no: EM131094538

Questions Cloud

Calculate total market surplus before tax applied : Continue to consider the market in which the supply and demand curves are described by the following information: A tax is applied to the market in the amount of $32 per unit. With the tax, sellers now receive a price of $60 per unit sold. You will h..

Government has implemented industrial policies : Select a country in which the government has implemented industrial policies. Have the industrial policies contributed significantly to the country’s economic growth? Have the policies lead to problems in the country’s economy?

Producer surplus-single-price monopolist to maximize profits : Examine the table Turkeys. Trader Tom is a monopolist that sells fried turkeys for Thanks giving dinner for a constant marginal and average cost of $10 per turkey. Assume that Tom has no fixed cost. Tom has 6 potential customers, each of which will b..

What is the law of diminishing returns : What is the law of diminishing returns? Can you give an example of when diminishing returns have set in (could set in) at the place you work/would like to work? What is the difference between economic profits and accounting profits? Can you give exam..

Hope of matching efficiency of competitive pricing system : According to Hayek, a social planner has no hope of matching the efficiency of a competitive pricing system because

The currency is going to depreciate : Suppose that the UIP holds. Suppose a country pegs its currency. If investors start to believe the peg will collapse and the currency is going to depreciate, then as the government defends the peg, the interest rate will

Explain its relation to or effect on international business : First being very specific clearly identify the underlined item or concept from the text, Additional Text Readings or lectures and then next explain its relation to or effect on international business from a manager’s perspective working for the compa..

Considering increasing the full social security retirement : The government is considering increasing the full Social Security retirement age to 75. If this occurs, how do you expect this change would affect how much on-the-job training that workers will want to obtain over their working life?

Model with floating exchange rate : IS-LM-FX Model with Floating Exchange Rate... For each of the following situations use the IS-LM-FX model to illustrate, first, the effects of the temporary shock, and then the policy response. (Note: Assume the central bank responds by using monetar..

User Account

All Pages