Economics and Free Markets: An Introduction

by Howard Baetjer Jr.

When we stop to consider it, a free economy is a marvel. Millions of people, mostly unknown to one another, each producing some particular good or service, somehow manage to coordinate their actions in a vast, cooperative, productive order with no one in charge. How does it work? Economics helps us understand. This book introduces the concepts on which all of economics is founded, concepts such as subjective value and gains from trade, scarcity and opportunity cost, thinking at the margin, division of labor, and comparative advantage. It then introduces the foundational theory with which we understand how market prices emerge and change to reflect changing supply and demand analysis. It also introduces the principles that underlie spontaneous economic market prices provide the information we need to coordinate our actions with others’ actions, while profit-and-loss feedback guides entrepreneurs as to how best to satisfy others’ wants. Private property rights and freedom of exchange give us the incentive to interact in mutually beneficial ways.

Genres: Economics

216 pages, Kindle Edition

First published January 1, 2017

Reviews

[Barry Linetsky · Rating 5 out of 5]

Excellent brief introduction to why free markets product the most wealth, Perfect for business managers and students looking for an introduction to the need for cooperation to create wealth and minimize waste in fulfilling human wants and needs.