6.Markets are usually a good way to organize-economic.activity.- Adam Smith made the observation that households and firms interacting in markets act as if guided by an“invisible hand
6. Markets are usually a good way to organize economic activity. Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand
6.Markets are usually a good way to organize economic.activity.·-·-·- Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions. As a result,prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole
6. Markets are usually a good way to organize economic activity. Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions. As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole
7.Governments can sometimes improve market outcomes. When the market fails(breaks down) government can intervene to promote efficiency and equity
7. Governments can sometimes improve market outcomes. When the market fails (breaks down) government can intervene to promote efficiency and equity
7.Governments can sometimes improve market outcomes. Market failure occurs when the market fails to allocate resources efficiently
7. Governments can sometimes improve market outcomes. Market failure occurs when the market fails to allocate resources efficiently
7.Governments can sometimes improve market outcomes. Market failure may be caused by an externality,which is the.impact.of.one person or firm's actions on the well- being of a bystander
7. Governments can sometimes improve market outcomes. Market failure may be caused by an externality, which is the impact of one person or firm’s actions on the wellbeing of a bystander