Econ Quiz

[TGregg]

Free markets typically secure more economic prosperity than government’s centralized planning because:

A. the price system utilizes more local knowledge of means and ends
B. markets rely upon coercion, whereas government relies upon voluntary compliance with the law
C. more tax revenue can be generated from free enterprise
D. property rights and contracts are best enforced by the market system
E. government planners are too cautious in spending taxpayers’ money

 

[scriabinop23]

Quote from TGregg:

Free markets typically secure more economic prosperity than government’s centralized planning because:

A. the price system utilizes more local knowledge of means and ends
B. markets rely upon coercion, whereas government relies upon voluntary compliance with the law
C. more tax revenue can be generated from free enterprise
D. property rights and contracts are best enforced by the market system
E. government planners are too cautious in spending taxpayers’ money

Fun.. this is the politicians generally failed.

 

[FGBS]

F. Humans will work harder for an influencable reward (profit) than they will under centralized remuneration.

 

[lrm21]

Economic Calculation Problem

http://en.wikipedia.org/wiki/Economic_calculation_problem

"without the information provided by market prices socialism lacks a method to rationally allocate resources"

 

[Covertibility]

Ironic that the car companies in the socialist countries (Japan, Germany) don't need bailouts.

Real world is so far different than textbook academialand.

The Populist

"What does that say about the field of economics, which claims to be a science? It’s an enormous blot on the reputation of the profession. There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless."

 

[scriabinop23]

Quote from Covertibility:

Ironic that the car companies in the socialist countries (Japan, Germany) don't need bailouts.

Real world is so far different than textbook academialand.

The Populist

"What does that say about the field of economics, which claims to be a science? It’s an enormous blot on the reputation of the profession. There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless."

In truth, your point about 'socialist' countries being somehow different from us is a flawed one.

The United States has never been a free market. The government and political agendas have always meddled with things to stablize things (which I actually think is good). The existence of central banking, regulation, doctrines, etc is all 'socialism' in the face of free market.

It leads to the original question posed actually being flawed. One could argue the economic growth many of the most developed markets have achieved is a function of central banking, political stability, trust in the system.

Free markets in their pure unregulated (central planned) form are unforgiving, brutal, and don't always lead to prosperity. Free markets are war and relatively anarchistic, primitive constructs. They are only good at one thing: price discovery.

 

[hawk24]

Quote from Covertibility:

Ironic that the car companies in the socialist countries (Japan, Germany) don't need bailouts.

Real world is so far different than textbook academialand.

The Populist

"What does that say about the field of economics, which claims to be a science? It’s an enormous blot on the reputation of the profession. There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless."

You must be one of the people that would fail such a test.

 

[Renegen]

I answered A, and there's a big difference between free market and centrally planned economy.

 

[Mav88]

Free markets in their pure unregulated (central planned) form are unforgiving, brutal, and don't always lead to prosperity. Free markets are war and relatively anarchistic, primitive constructs. They are only good at one thing: price discovery.

simplistic academic response, probably from some poly sci professor who wasn't worked a day in his life.

Free (er) markets are also much better at innovation, production (productivity enhancements), and are morally superior due to their basis in liberty

 

[TGregg]

Nice to see our forum doing much better than average, and fortunately nobody has selected "government planners are too cautious in spending taxpayers’ money"