Microeconomics Question from Walter E. Williams:Edit

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


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


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

Other QuestionsEdit

Next: WEW-016
Previous: WEW-013

WEW Questions First 20

Ad blocker interference detected!

Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.