Hayek

Front

Which group of thinkers did Hayek belong to?

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Austrian

Front

Hayek thought the biggest problem in economics was not having enough resources.

Back

False

Front

Why did Hayek think people should make their own decisions?

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People know their own situation better than the government

Front

What is local knowledge?

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Knowledge that individuals have about their own circumstances

Front

What does Hayek say the price system does?

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It helps people make decisions by sharing information through prices

Front

Why can’t central planners manage the economy well, according to Hayek?

Back

Because they lack access to dispersed and constantly changing information held by individuals

Front

How does Hayek describe the way the economy adapts to change?

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Through individual decisions reacting to local changes, guided by price signals

Front

What makes the price system so powerful, according to Hayek?

Back

It lets people coordinate with each other using minimal information