Problems: Foundations of Supply: Yoga and Lattes
Problems: Economics Overview II

Problems: Plan, Market, and Firm

  1. Why did Friedrich von Hayek deserve his Nobel Prize?

  2. Apple Computer and Toyota Motors do not allocate goods and services within their organizations with the market system--they use internal corporate central planning. If central planning is as poisonous to an economy as Professor DeLong has maintained, why are large successful corporations are large islands of command-and-control central planning within the market system that do well?

  3. Describe how a market economy efficiently allocates scarce resources among alternative uses.