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Friday, 26 August 2011

Keynes vs Hayek (free market)

The greatest economic debate has been between the Keynesian views about government intervention in the economy and the Hayek views that markets should be left alone.

These two videos put some fun into the fact that these opposing views will always battle it out to be the best option. In your exam, it is important to form your own opinion about the economic issues you are discussing.

http://econstories.tv/2010/06/22/fear-the-boom-and-bust/

http://econstories.tv/2011/04/28/fight-of-the-century-music-video/

So which are you?

Word of the Day

Monopsony

A type of market structure where there is only ONE buyer and many sellers. An example of pure monopsony is a firm that is the only buyer of labour in an isolated town. Such a firm is able to pay lower wages than it would under competition. Although cases of pure monopsony are rare, monopsonistic elements are found wherever there are many sellers and few buyers. Monopsonies, like monopolies and oligopolies, are a form of imperfect competition.