When you go shopping, you usually find all the products and services you are looking for, at prices you are willing to pay. It is actually surprising that somehow merchants in cities as large as New York, Los Angeles, and Chicago know what products to stock in their stores and in what quantities. Adam Smith, the father of modern economics, described this situation by saying that the free market economy operates as if an "invisible hand" (the price system) is directing it.

• What is the process by which the free market economy determines what goods and services should be produced?
• And how do non-free market economies decide which goods to produce?
• In general, what are the differences between market and centrally planned economies? You can contrast free-market economies like the USA with command economies such as China, explaining the benefits and problems of both systems.

This week's topic is intended to provide you with an opportunity to reflect on how markets work. To do this, (1) you will need to explore the concepts of scarcity and opportunity cost, and (2) you will need to explore and become familiar with the supply and demand model. The supply and demand model is a basic tool used by economists to illustrate how markets work, and to illustrate the impact on prices and quantities of 4 possible scenarios: increasing and decreasing supply and increasing and decreasing demand. You should demonstrate an understanding of the tool.

The videos below present interesting views comparing a free-market economy versus a centrally planned command economy. Select one of the authors and explain the differences between both systems, provide at least five pros and five cons, and conclude which system you prefer and why:

Ludwig von Mises: Socialism leads to dictatorships; government means coercion and compulsion, elimination of personal freedoms; state interference destroys innovation, economic life; socialism leads to lack of freedom of choice for workers and consumers; the worship of the state is the worship of force, led by incompetent, corrupt, or vile men.

Video Link 1: https://youtu.be/fF40oMpW2lE?si=N0Y9lSm7ftUQ6poO

Friedrich von Hayek, Ayn Rand: Economic control is the control of the means for all our ends, what men should believe and strive for; planning leads to dictatorship because dictatorship is the most effective instrument of coercion and the enforcement of ideas; price system is a mechanism for communicating information which is dispersed among all the people involved in the process.

Video Link 1: https://youtu.be/Qz9TzbyIHFw?si=El53ZvWpUQC82u9h

Video Link 2: https://youtu.be/s1RxKW-P5V8?si=49KSFmXVAG-wKdZY

Video Link 3: https://youtu.be/0_PQlX9NDL0?si=ulpf_355lMaOP6aA

Milton Friedman: The use of force to promote equality leads to lack of freedom and corruption; governments are irresponsible, inefficient and wasteful; it leads to inflation that harms especially the most vulnerable; government actions to benefit vulnerable sectors harm those protected sectors; the Federal Reserve generates instability and financial speculation, it should be eliminated.

Video Link 1: https://youtu.be/fkEIrWSPKhk?si=kRK14Q6EFtn8Z203

Video Link 2: https://youtu.be/27Tf8RN3uiM?si=LpMTTuhjL0zNKuP8

Video Link 3: https://youtu.be/m_q_Y0U1QcI?si=Dof6ZZ8B5q9wKdE7

Video Link 4: https://youtu.be/-6t-R3pWrRw?si=di5FSCqU9zNrVf0J

&) Week 1 Discussion. Free markets versus planned economy. Macroeconomics When you go shopping, you usually find all the products and services you are looking for, at prices you are willing to pay. It is actually surprising that somehow merchants in cities as large as New York, Los Angeles, and Chicago know what products to stock in their stores and in what quantities. Adam Smith, the father of modern economics, described this situation by saying that the free market economy operates as if an "invisible hand" (the price system) is directing it. What is the process by which the free market economy determines what goods and services should be produced? And how do non-free market economies decide which goods to produce? In general, what are the differences between market and centrally planned economies? You can contrast free-market economies like the USA with command economies such as China, explaining the benefits and problems of both systems. This week's topic is intended to provide you with an opportunity to reflect on how markets work. To do this, (1) you will need to explore the concepts of scarcity and opportunity cost, and (2) you will need to explore and become familiar with the supply and demand model. The supply and demand model is a basic tool used by economists to illustrate how markets work, and to illustrate the impact on prices and quantities of 4 possible scenarios: increasing and decreasing supply and increasing and decreasing demand. You should demonstrate an understanding of the tool. The videos below present interesting views comparing a free-market economy versus a centrally planned command economy. Select one of the authors and explain the differences between both systems, provide at least five pros and five cons, and conclude which system you prefer and why: Ludwig von Mises: Socialism leads to dictatorships; government means coercion and compulsion, elimination of personal freedoms; state interference destroys innovation, economic life; socialism leads to lack of freedom of choice for workers and consumers; the worship of the state is the worship of force, led by incompetent, corrupt, or vile men. Property | L.. @ Ludhig von Mises o' F LGN ] PHUP[HT\\@ @ AN Bl G Rl m b DA P o) 019/4413-1 E3 Youlube [2 Friedrich von Hayek, Ayn Rand: Economic control is the control of the means for all our ends, what men should believe and strive for; planning leads to dictatorship because dictatorship is the most effective instrument of coercion and the enforcement of ideas; price system is a mechanism for communicating information which is dispersed among all the people involved in the process. ~= F A Hayek- Une.. Ayn Rand - Liber... } Macroeconomics Milton Friedman: The use of force to promote equality leads to lack of freedom and corruption; governments are irresponsible, inefcienl@)i wasteful; it leads to inflation that harms especially the most vulnerable; government actions to benefit vulnerable sectors harm those protected sectors; the Federal Reserve generates instability and financial speculation, it should be eliminated. Common Sense on Sense can CMilton Friedman... . . . Com non Sense Cap .Com Macroeconomics YouTube commonsensecapitalism.blogs FREE TO Milton Friedman... ... HARCOURT BRACE JOVANOVICH YouTube [} Milton Friedman.. ... Economist Youtube Milton Friedman. .. . Youtube Rubric. In your response, you must demonstrate your knowledge of chapter 4 of the textbook, especially: 4-4. Supply and Demand Together and 4-5. Conclusion: How Prices Allocate Resources. Your grade is based on the rubric below. You are required to post your main post and respond to at least two peers, to make a minimum of three posts totaling at least 500 words. Include a word count on each post. All of your posts should sum to a minimum of 500 words. Each post submitted should be between 150 and 250 words. Keep them short, specific, and clear. Remember to document all use of sources by using citations and references. These should be in APA format A. Please review Plagiarism Powerpoints AV Now click on the "Week 1 DISCUSSION" title above to go to the discussion forum. You can start a new thread by clicking on the Create Thread button at the top. You can also respond to an existing post by clicking the Respond button at the bottom of the post. Did not meet Somewhat met Met standard Excellent standard standard work 35 40 45 50 Excellent use of reading Macroeconomics material Adequate Theory, Some reading showing a reading depth of literature No reading material used material used and cited understanding review material used and cited, or cited showing some and showing good understanding interpretation, understanding meeting or exceeding expectations 14 16 18 20 Good Excellent Information, Poor quality of Acceptable level research. Most research, of research. Main research and needed excellent research information was information information is information. incorporated. used. present. Good Excellent Some examples. examples examples 7 8 9 10 Excellent analysis, Adequate shows real ? Inadequate Some analysis, analysis, main depth of issue(s) analysis, main main issue(s) understood understanding issue(s) not understood but of main Analysis, understood, not analyzed and analyzed issue(s) and itsexpectations 14 16 20 Good Excellent Information, Poor quality of Acceptable level research and of research. Main research. Most research, needed excellent research information information was incorporated. information is information. used. Some examples. present. Good Excellent examples examples 7 8 9 10 Macroeconomics Excellent Adequate analysis, shows real Inadequate Some analysis, analysis, main depth of analysis, main main issue(s) issue(s) understood understanding Analysis, issue(s) not understood but of main understood, and analyzed synthesis, not analyzed well with issue(s) and its critical not much adequately, some implication, thinking details. No details. Some adequate detail arguments well synthesis, synthesis, supported with introduction, introduction, Adequate details. subtitles, synthesis, subtitles, Excellent introduction, conclusion. conclusion. subtitles, synthesis, conclusion. introduction, subtitles, conclusion. 7 8 9 10 Professional Poor Limited Good Excellent writing (APA) professionalis professionalism professionalis professionalis m and APA and APA m and APA m and APA standards. standards. standards. standards. 7 8 9 10 Participation Some No Good and Excellent and participation in timely timeliness participation on the debates the debates and participation in participation in the debates the debates not timely