Hog Operator
Hog Operator
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Hog Operator
"The invisible elbow", economics questions, please help?
1. what is meant by the "invisible elbow", and how does it contrast with adam smith's "invisible hand"?
2. how do hog farmers exemplify positive externalities? negative externalities?
3. explain what the hog operators gained through the political process?
4. who pick up the tab for the externalities created by large scale hog farmers? explain what they pay for.
5. explain the tole of the consumer in elping decide what type of hog farmer remains competitive?
please help:)
Workings of markets and price mechanisms seem straightforward and positive, but don't come without unintended or unconsidered consequences, which can also be well-known and willingly included in producing goods and profits. Michael Jacobs (1991) talks about an "invisible elbow" of market forces, able to cause general ruin, as a counterpart to Adam Smith's "invisible hand", bringing wealth and prosperity. Another term for "invisible elbow" is externalities. How do they occur?
Externalities refer to differences between private costs and benefits (incurred by economic agents involved in a market transaction) and social costs and benefits (incurred by other social agents not involved in a market transaction, along with private costs and benefits), which means economic agents can't enjoy the full benefits, but also won't pay the full costs of their actions. Externalities can be positive (flowers growing in one's garden giving pleasure to neighbours and passers-by) or negative (environmental damage or destruction as a by-product of resource extraction, deforestation or chemicals production) and are usually not experienced by people who create them. Both producers and consumers are involved in creating externalities. Customers are interested in saving money by buying desired items at lowest prices without wondering whether their choice contributes to a low-wage exploitation culture or air or water pollution in another country. Producers are concerned about the creation of huge profits while investing as little money and resources as possible, moving their production wherever they find no or basic environmental and work regulations. Markets don't consider wants of future generations or public goods, like air or water, and exclude people with no or little money available.
if this is what you want you can read the rest of this article here:http://everything2.com/index.pl?node=free%20market
hope this helped
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Hog Operator
Hog Operator
Cool Operator - I'm Hog for You Babe
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