International Relationship Interview Question:

Explain What are the advantages of leaving the allocation of a country resources to the price mechanism?

Submitted by: Administrator

The main conditions required are:

1. Either a finite number of agents or goods.

2. No externalities - That is, the consumption of one person should not harm or benefit anyone else.

3. No matter how much a person is consuming, they must be able to be made slightly happier by consuming a bit more of something.
Submitted by: Administrator