Prompt 1

Explain how the ideas of valuation and costing (opportunity cost) expressed by Alchian relate to the question "What is economics?" defined and articulated by Sowell. Support your reasoning with quotations from the Alchian and Sowell readings.

Prompt 2

Explain how the ideas of (1)valuation,as expressed by Alchian; (2)tacit knowledge,as expressed by the various readings; and (3) "the knowledge of the particular circumstances oftime and place,"as expressed by Hayek, work together to help defineand resolvewhat Hayek means by "the economic problem of society." Support your reasoning with quotations from the readings.

References :

https://en.wikipedia.org/wiki/The_Use_of_Knowledge_in_Society-  

Hayek, F. A. (1945).The use of knowledge in society.American Economic Review, 35(4), 519-530.

The pdf is available in google

https://en.wikipedia.org/wiki/Tacit_knowledge 

Alchian, A. (1969).Cost.In D. L. Sills & R. K. Merton (Eds.),Internationalencyclopedia of the social sciences(pp. 404-407).New York, NY: Macmillan.

Sowell reading - thomas sowell basic economics chapter one