Essays on Market Mechanism

The competition is a prerequisite and characteristic feature of the market. After all, if the basis for the functioning of a market economy put the domination of private ownership of the means of production, which, in turn, acts as a guarantee of freedom of choice for entrepreneurs in their activities, and certainly there is competition between them. The word competition comes from Latin and means to flee together to compete on some other career. This competition is crucial for establishing market prices, which are the main feature of a market economy. Competition (in the economic sense) - the rivalry ...

The Evolution of Economics, Economic Systems and Politics

The science of economics, starting with Adam Smith –the father of economics, is the total efforts for developing an understanding of the economic behaviors of the humans. The science of economics follows a development path in defining the economics. The first definition of the economics was based on the household management. Members of family specialize in completing some specific tasks. The specialization relies on the genders' traditional functions. This definition was developed by the philosophers in the ancient times before the Dark Age in Europe. Adam Smith developed this definition by creating a theoretical economic system which has the ...

Introduction

A discussion among the classical economists and the Keynesian economists continues on the government intervention in the free markets. According to the classical economists, the free market mechanism can develop solutions for the crisis in the market if there is no external influence on the markets. The Keynesian economy merely expresses that the free market economy carries the risk of generating crises and undesired deficit or surplus in the economy when the demand cannot clear the supply (Posner 234-252). The discussion on the government intervention is changing direction each time the world economy suffers from a global crisis becomes ...

The American Economy has faced one of the most destructive economic crises in 2008. The crisis started in the sub-mortgage markets has expanded to the financial markets, and the largest financial institutions have declared their bankruptcies. Subsequently, the collapse of the financial markets has spread to all the industries in the country. What the American lost in the global financial crisis and what made the recovery from the crisis tough was the loss of trust for the American Economy among the agents in the economy. Until 2008, the economic development in the US was based on the consumption economy. ...

American Public University

The Moral Critique The moral critique views that political scientist's, as well as economists, became less principle experts who betrayed their original vision and goal of political economy. Greater than any other social sciences economists separated themselves from these controversial concerns in last half of the century and have since developed a personal contained professional discourse. The newly created discourse is that of positive science that excludes the evaluative claims earlier stipulated. Myrdal Gunnar never wanted to see these economist returning to the political and moral commitment and advocated for a clear distinction between the advocate and scientists roles ...