An economic control is said to be established, when restrictions on individual are imposed. An individual can be producer or consumer. The control, thus, restricts the choices of producers and consumers. In other words, that the control can be imposed in a planned economy from the supply side, from the demand side and/or from both the sides. But the problem [...]
Neoclassical Theory of Money (Monetary Issues): With Graphs, Equations & Formulas! Neoclassical theory of money has been developed as a part of reaction against the Keynesian revolution. Keynes repudiated the classical theory of full - employment equilibrium and demonstrated the possibility of less - than - full employment equilibrium. The counter - revolution which was initiated by Pigou in 1943, [...]
In this article we will discuss about:- 1. What is Market Mechanism 2. Efficiency under Market Mechanism 3. Examples 4. Graphs. What is Market Mechanism: Market mechanism is often interpreted as a 'free' market system. For a layman 'free' means that when you go to a market, there is no restriction - you can buy as much as you want [...]