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EoE: 4.2.A - Why Do We Exchange Things?

Professor Michael C. Munger explores what makes exchange more equitable than simply giving gifts. He finds that exchange is important for two reasons: 1. It corrects mistakes in allocation by moving things toward higher-valued uses. 2. It makes everyone involved in exchange happier. Prof. Munger provides a few examples of how exchange can make people better off without changing the total amount of wealth available. Exchange can even make people better off when they have different items and different preferences. This is the power of markets. This video is included as part of a 40-lesson course on the Economics of Entrepreneurship available now for teachers and students at no charge at FEE.org/Courses.

from Why Do We Exchange Things? (2016)
Creator: Learn Liberty
Posted by Foundation for Economic Education
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