WEW-014
From Economics
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[edit] Microeconomics Question from Walter E. Williams:
"What are the essential characteristics of exchange opportunities and production opportunities, on the social levels?"
[edit] Answer:
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
[edit] Sources
Hirshleifer & Hirshleifer, p 424. (?sixth edition?)
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