Baetjer explains scarcity, the problem that any given good of finite supply can only ever be put to some of the many ends for which we might use it, and opportunity cost, the concept that taking one option costs us the benefit we would have gotten from taking the next-best option instead.
There’s a plausible case, though not a fully persuasive one, for redistributing income to relieve poverty. Other forms of redistribution should be eliminated.
Even though markets aren’t perfect, most regulations end up being counterproductive. Other regulations, like contract enforcement and rules against fraud, help.
Markets have been shown to be effective to a degree in combating certain types of discrimination. Anti-discrimination laws have drawbacks we shouldn’t ignore.
24 min
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