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WEW-014

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Microeconomics Question from Walter E. Williams:Edit

"What are the essential characteristics of exchange opportunities and production opportunities, on the social levels?"

Answer:Edit

Production increases aggregate wealth. Specializing in one good will take advantage of economies of scale and the producer can maximize the social value of his output/income. Trade increases aggregate utility. To the degree which we observe trade, it must be a utility improving endeavor.

Bottom line: Exchange preserves social totals, and production alters social totals

SourcesEdit

Hirshleifer & Hirshleifer, p 424. (?sixth edition?)

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WEW Questions First 20
WEW-001WEW-002WEW-003WEW-004WEW-005WEW-006WEW-007WEW-008WEW-009WEW-010
WEW-011WEW-012WEW-013WEW-014WEW-015WEW-016WEW-017WEW-018WEW-019WEW-020

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