Chapter 13 Making Markets Work pages 260-284 Natural Capitalism Click on the lin

Question

Chapter 13 Making Markets Work pages 260-284 Natural Capitalism

Click on the link below and read the free Pdf file:

http://www.natcap.org/sitepages/pid69.php (Links to an external site.)

1) Post an response to this chapter (15 points minimum of 100 words)

What was the major point of the article? What idea(s) expressed by the author do you agree with most? Which idea(s) do you disagree with or are in the least agreement with? Other comments?

2) Reply to another student's posting. (5 points minimum of 50 words)

Explanation / Answer

1) in this chapter of Making markets work of the book "Natural Capitalism" , the author tries to show a contrast of how the theoretical economic understanding of an economy has posed problems for the efficient working of the economy. The rules and laws of market depicted by the so called text book economic theories are very different from that of practical understanding of an economy. The very first problem author poses is of capital misallocation, where the companies or corporation tries to build larger facilities for market expansion and capture through more capital investment but reducing expenses on energy could provide the entrepreneur with larger profits and thus capital accumulaton. The capital flows which is the lifeblood of capitalism are largely misallocated because most international opportunities to invest in, say, national or utility-level electric power systems consider only supply-side, not demand-side. The misallocation arises when too much money is invested in the supply side and not in the demand side of an economy.

Well, in the idea of organisational failures i agree most. anf nothing to disagree upon

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.