International Relationship Question:
Download Questions PDF

Explain What are the advantages of leaving the allocation of a country resources to the price mechanism?

Answer:

The main conditions required are:

1. Either a finite number of agents or goods.

2. No externalities - That is, the consumption of one person should not harm or benefit anyone else.

3. No matter how much a person is consuming, they must be able to be made slightly happier by consuming a bit more of something.

Download International Relationship Interview Questions And Answers PDF

Previous QuestionNext Question
Can you explain Should Newspapers and book publishers convert to electronic publishing over paper publishing as their primary product?What is theory of mercantilism?