González Nevarez, Mario J. Capitulo 1 Números Pares 2.

Both Marshall and Stigler believe that it is possible to reach efficiency and this offer us their 2 cents worth of thought, each one of those pennies offering a different side (approach) to the problem. Marshall decides to attack the root of the problem. He goes on to imply that if we level the social playing field by allowing more people access to the best education the system could possibly offer, then they will be more efficient in solving problems (we might imply) in general. With a different angle we can see that this is a normative concept which can also be expressed and backed by data from the positive economics. Having said that, we can also see that there is a conflict between these two statements, and it is a very straight forward one. Marshall seems to understand the potential any one human has, given the correct development, to be "successful in tasks" (a phrase witch here means able to do a good job) if given the proper education (witch can translate to production techniques) which in turn will benefit the whole of the nation by being effective and efficient in all its tasks. On the other hand Steigler views the worker as no les than a machine (wich in no doubt will probably have taken the workers place at the printing press by the time his book was published) wich needed an expensive yet unjust (we might imply)upgrade in order for it to perform well. Steigler's aproach is one that might work in the short term by giving the workers only by giving them pizza (a term here used to describe an economic compensation) instead of investing in a the pizza oven (a term here used to describe the technological knowlage and working conditions of workers). Stigler's patch to the problem provides a remedial potion wich will ware off once elements like the "natural inflation rate" hits the proverbial "fan". 4. Grafica 6. Grafica 8.Grafica

Mario J. Even so it is safe to say if an industry (market) must be shut don for the benefit of a mayority of the inhabitants of the world (including the flora and founa) then it it would be a Gov. thus solving the information inequality poblem and promoting "perfect competition standards". FCFS provides acces to those who have the methods to arrive first. c) Government failure in this example might be seen when they provoque a substantial loss in the industry do to poorly done legislative work or ill implemented. b) Ration Coupons-Not knowing fully how they actually work. 4.The FCFS mechanism is good on a short notice sale and should be used carefully as of not to tilt imediate investments (short term) and long term investment. This market method provides a set of porcential partso of "acces" to a good wich is a better way to distribute this allredy scarce good amongst the market (potetial buyers).This is a measure that even though free based participation (a term here wich means that anyone should be able to participate).g.Gonzalez Nevarez. revoque in licenses or permits) and in some cases provide a tax and bond system in orfer for companies to trade the ammount of polution they will produce douring a given period of time. abolishing . a) Auctions. c) First Come. thus unbalancing the marked. This method also might provide a monopoly to the sole winner of the auction.When a good is scarce (as it appears happens often) there should be mechanisms to impose "perfect competition standards" in order to truly have a free market. b) Usualy with provoqued natural disasters or pollution. First Sirved (FCFS). This in the long run will help a broader base of companies and individuals that will in turn be a more stable market base due to the fact that no one companie has enough porcentual woight in a specific trade as to tilt it in its favour or becaus of adverse effectiveness loose market value and thus negatively impact other companies. one could easaly fall into a monopoly'ésque style of controll over that good. Capitulo 2 Preguntas con numeros pares 2. Providing that the contemporary market is an Internet based mechanism then we must provide so that the advertisements for this scarse good's FCFS status be presented to the whole of the market. Yet aggain we face a another mechanism that without proper legislation will turn into a monopoly making machine. the government and in some cases the International Comunity (ECOSOC. Still. metric tones of air polutants) that they can produce in a given amount of time. the succes is only accessible to thosethat have an alredy large enough amount of capital to spend/invest. UN) produce legislature to regulate such industries and provide penalties (fines. without further regulation to establish a porcentual top to a single buyer. I-Air Polution a)Air polution is considerd a market faliure becaus it is a negative byproduct (spillover) of the industries with no enviromental restrictions that in turn effect the general population and other industries. Some countries have a top (maximum) of amount of bonds (e. Thus not providing "perfect competition standards". Failure not to do so (eg.

ask R. Jobs have become as specific as their line of work. The relationship here is due to the fact that the gov. In this particular case we might observe that Faliure due to Government Intervention actually resides in both public and private sectors. b) The government has to protect its citizens from byproducts of the market such as the unhealthy distribuition (unjust) and the end of Buisness Cycles. 6. c) The creation of regulations (legislature) to controll these adverse effects of an unefficient market/industry we call walfare.the latter would be considerd highly unethical. thus helping prevent the ill distribution of influence. Murdoch. By size I reffer to the labor force and by availability to the number of different elements that are available in favor of production. The TRade would be very slow and mostrly done through loval markets or a network of trading outposts. People with less "fortunate births" are confronted with the reality that they have little to zero capital for investment thus perpetuating the inequality. most people would hae to mainly specialize in survival /household trades such as farming or fishing but if they couldnot live from those trades then they would work in other trades such as masonry or in the smith. Welfare a) The market faliure that provoques the creation of welfare lies in it not being able to provide perfect competition standards. This is a matter of size and availability. b) By the time of Smith ther had been an enormous tecnological evolution in all industries.slavery. for example. use the fact that some poeple are born into wealthy families wich gives them the obvios advantage of having investing capital at their disposal. II. fossil fuels etc). The bigger part of the succes depends on both the creation of equal trading conditions and the ability of the private/public sector to provide with jobs so that walfare may only be used as a last resort and not strein (unbalance) the public sector. We could. One might imagine that WWII distrupted International Trade. Telephone Monopoly a) The market fails to self regulate itself and allowes one person/company total or a dominating influence and controll in an industry which gives the owner power to increase prices at will. and it did for a time being. must be weary of extending welfare throught an extended period of time so that people come to depend heavily on it-wich is the least of the worries. b) The government invervines with monopolies and such tactics b providing the legal framework to criminalize such tactics and prevent an unblanced and un checked dominion over the industry. a word here used to descibe the intoxicating mix of poltical power and wealth. We see a recurring phenomenon at the end of these cycles where there is a sharp increase in inflation and unemployment. S of A mustered sufficient capital to invest and take advantage of their newly acquired acces to what would turn out to be an imperial dominion over a very large portion of the International Trade and . III. a) In the time of Jones. Due to the outcome of the war the U. Things like 'income support for the poor" re distributes a very small portion of the private sectors wealth by separating an amound gatherd through taxation in order to provide a minimum level of living standards.

have surpassed their life expectancy (either by advances in the medical feilds or foolhardiness no one is quite certain) thus receiving social security for a longer time thus draining the sistem. that are able to their work through the internet and being much more cost efective due to the fact that they charge far less than a Radiologis in a rich country. Due to vast amounts of proffecionaly trained workforce.S. to nothing at all. sacrifice and commitment with a reinvestment of the taxes to provide with subsidized health care coverage . The high number on the chart corresponds to the baby bomers who . known sweatshop owners: Nike and Zara). Thanks to the existing political. in order to make scure that later on they will receive an equivealent ammount once they retire. issues legislature that obligates citizens to pay . tactic wich in the globalized world has very little regard for national borders or barriers. even if it is on the other side of the world. II. This tactic provides the widest margin of earnings but at an unacceptable human price. the U.or have it automaticaly deducted from his/her paycheck. Theese sweatshops force serfdom onto its workers by forcing them to work under inhumane cnoditions for wages that vary from close to nothing. In the proffessional service sector we have the element of higly qualified proffecionals services such as might be a Radiologist. Technological products are the best example but we could also add two other varietys: the proffessional job market and the textile industrie. The gov. military and economical dominion over the international community. often buying manufavturing services were it is cheepest. 8. the Gov. proliferation and integration due to entities like the United Nations. views that providing safety to their citizens way of life is in constant threat from both internal and external elements.S. of A. thus justifying the high percentage og taxes devoted to this purpose. of A. the various industries have been able to distribute more efficiciently their now complete production cycle. the International Monetary Fund and the North Atlantic Treaty Organization helped forge international relations on a much more efficient style. I-Health Care: Due to a rapid population growth known as the "Baby Boom" in post WWII U. III. In the textile industry due to the lack of proper regulation and taxation we have the formation of clandestine workshops in poor countries by measures of direct creation or subcontracting by major retailers (eg. . in turn understands that most of them do not generate the overly priced cost of health care and thus compensates years of labour .Political Power. there have been a myriad of advances that gave the Market System incredible growth. National Defense: Basing the aproach on the Internatinoal Relations theory known as Realism theory. aggainst all odds. Social Security: In order to make sure that citizens will have a decent living standard once they are no longer able to (or choose not to) work. c) By the time we catch up with Hall. the Gov. and thanks to and advansed transport system. could take full advantage in the technological advances in telecomunications and computing industried to connect the global trade markets. We have that a big part of the population has reached a point where they need constant monitoring of health care profecionals.

raised the price to such an extent that people would choose not to spend money on gasoline in order to better . not being able to afford chicken products. In reality universities have expanded over the past 3 decades but tuittion fees have apparently passed the point of equilibrium in the "market". an insufficient supply to the market wich wil in turn sharply increase in price even though the number of the demand didnt increase. If you choose to tax chinese imports then they will have to sell at a higher price thus giving Yankee companies a competitive edge by being able to sell more even at the elevated labor cost. religion and the way they could affect the market). c) This is due to the posibility that the owners in order to compensate. b) Being the fact that a substantial part of the worlds population are indeed very. due to the scarcity of the good. the now cheaper. the Gov. they chose the meat thus leaving a huge surplus of fish wich had to be sold cheeaper in order to compete with the peoples thaste for meat (an analogy for elements such as taste. a)False-This will cause. Capitulo 3 Preguntas en numeros pares 2. Mario J. meat product (eg. Inexpensive pizza would ocupy the part of the % that is spent by the portion of the population who needs to save or needs to be more efficient with their capital. Hens forth. hamburger) thus increasing demands. If we were to cinsider marijuana legal and instead of a War on Drugs we would have a bann on all non domestic marijuana then this would eliminate competition allowing local farmers to sell cheeper 6. This would cause for prices to go up in both chicken and hamburgers while decreasing demands. d) False-Every time a raid is succesfull or a substantial stash house or growery is confiscated/destroyed provoques a decrece in supply-as accessibility goes down. culture. a) The rise in boot prices is due to an increase in demand wich also gives security to the manufacturer to invest and increase production. 4. the clients begin to substitute the amount of chicken with. prices go up in a buy off. very devout catholics. Workers at McDonalds dont need to worry much. Not being able to reach at the consumers consumption posibility (wich here means the adquisitve potential). However if you choose to subsidise the industry then they could compete price wise with the chinese by using the subsidies to lower production costs and thus sell cheeaper. If we add the fact that with so much insecurity in the job market no one can trully assure that they could eventually pay off a student loan. With a good public campaign appealing to the patriotic side of the middle class you could surpass the impact on Chinese imports c) It has taken perhaps longer than expected but we can now see that the price of College Tuition is so exorbitantly high that there are large groups of people who can't afford it. has established a legal frame work to prevent such changes in the market to affect the wages of their emploeeys by establishing the minimal wage.Gonzalez Nevares. the fish industry was accustomed to a stable yet high level of demand but when the people where given the option. b) Depends on how you choose to protect. The increase in demand for hamburgers might be due to an increse in the price of checken feed wich propelled an increse in the total production cost of the chicken to such an extent that it was directly reflected in the menue prices at the Tsunami Bar & Grill.

The figure 3-3 is a steady demand curve. there would be an increase in job openings and there would be less people doing the production fo the job wich lowers production costs wich in turn we might use to infer that wages went up due to the fact that there was less people to pay thus more bounty to go around.supply other aspects of their budget. The consumption needs of the market were increasing as the computers slowly enterd mainstream buisness and lager lessurem markets. d) Becaus the Black Plague eliminated 1/3 of the whole of european population. This security to invest plus light speed advances in production efficiency provided the industry with the tools it could use to lower prices enough in order to gain access to the general populations spending budget. 8. .

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