Advantages of using the price system:
- It expands upon people's ability to act on their interests.
- You don't have to assertively ask people to order themselves by need.
- People can evaluate which uses of a good they value most.
- It forces consumers to think about the value that other people place on a particular good.
- Not using the price system bankrupts us.
- Without prices, people have to rely on brotherhood, which never works.
- The more important the good or service is, the more important it is that it's left to the market.
Money
- Changes the nature of transactions
- Cuts out the information problem of transaction costs
- Solves the "double coincidence of wants" problem
- When people want to trade more, some form of money emerges
- Money is divisible
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