Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
|
The information problem (3p.) |
- information is never available in totality - bits and pieces with individuals - how to use information best? |
|
|
Three models of economic planning |
1. Centralized (best for scientific knowledge) 2. Competition (many individuals with info, innovation) 3. Middle path (delegation sent to specific industries) |
|
|
Modern production requires... |
constant change and readjustment |
|
|
Arguments pro-decentralization |
rapid adaptation to change works best if left to people who are experts in the field |
|
|
The force and power of the price system |
- price system communicates information - most essential information - but only beginning to evolve |
|
|
Hayek: Theory? |
classical idea of market (basis for neoliberalism) but attacks neoclassical economics as emerged in 20th century |
|
|
Hayek on customs and traditions... |
"custom and tradition stand between instinct and reason" |
