Course Level 3: Advanced
Estimated Study Time: 1-2 hours
PREREQUISITE: Microeconomics: Supply, Demand, and Equilibrium
What is the purpose of the price system? Why is trade crucial to an economy? Learn all about how the price system helps to coordinate global economic activity.
First, learn about how a price is a signal wrapped up in a signal and how we should approach limited resources. Furthermore, learn how speculation and futures effect the price of goods, such as orange juice and gasoline. Then, explore price ceilings and price floors. Learn how price controls create shortages, as well as other unintended sequences. Lastly, learn how specialization and division of knowledge relates to trade. Learn about the typical arguments against trade and how these arguments can be refuted.
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