斯科特微观经济学课件Chapter 22 - General equilibrium and the origins of free-market and intervention.pptVIP

* * * * * Appendix A Chapter 22 General Equilibrium and the Origins of the Free-Market and Interventionist Ideologies * The Free-Market Argument Free-market advocates (laissez-faire) Perfectly competitive markets – efficient No government intervention Interventionists Flaw: Efficient free markets Outcome – not equitable * The Free-Market Argument Economy Given stock of labor capital People = producers consumers Consumers – convex indifference curves Decreasing marginal rate of substitution (MRS goods) Producers – convex isoquants Decreasing marginal rate of technical substitution (MRTS