Wrap-up of Economic Principles
Markets often don't work well for two reasons: 1) they don't truly exist and 2) failure of institutions. They do work well when both producers and consumers have options. Also, the outcomes of the markets should be efficient.
Efficiency: delivering what people want at the lowest "possible" cost
Institutions: formal and informal social mechanisms that humans develop in order to sustain peace (i.e. good legal system, good government, etc.)
The rule of law is also necessary for market functionality as well. Under the Rule of Law, everyone is treated equally, the laws cannot be arbitrary, and all good laws are general.
Inflation: the general increase in all prices in an economy --> caused when there's too much money floating around
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