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Macro Econ - Assignment Example

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Instructions: Unit 1 - Assignment 2 Assignment Type: Discussion Board Deliverable Length: 3–4 paragraphs Points Possible: 50 Due Date: 5/1/2011 11:59:59 PM Proponents of free market systems argue that free enterprise leads to more efficient production and better response to changing consumer preferences…
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Macro Econ
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Macro Econ

Download file to see previous pages... For assistance with your assignment, please use your text, Web resources, and all course materials. Proponents of the benefits of free markets argue that markets create “efficiency” in the distribution of goods and services. A great example of the increased efficiency in distribution by increasing the scope of market mechanisms is the impact of internet markets in used goods, such as Ebay and Craigslist. Items that might have once only been able to be resold for rock-bottom prices at garage, garden and stoop sales are now valued in a more universal fashion as they find a wider potential market on the web. Items which might be of interest to only a very few people can be much more easily located by these select few customers. In both cases, the consolidation of many small markets into a single large one increases the efficiency of valuation and distribution. On the other hand, the stock market has provided of the pitfalls of market mechanisms, which has fuelled criticism of markets. The ongoing economic recession was launched when market speculation in real estate caused inflation of home prices and created incentives at every level of the market, from real estate agents, to mortgage brokers to stock sales to sell and buy at prices far beyond the value of the properties or homeowners ability to pay. ...Download file to see next pagesRead More
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