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Questions for Hayek
1. Why is Hayek critical of the common assumption that buyers, sellers, producers, and economists all know everything about the economy?
- What does Hayek mean when he says (H.16) “…the sort of knowledge with which I have been concerned is knowledge of the kind which by its nature cannot enter into statistics and therefore cannot be conveyed to any central authority in statistical form”?
Does the minimum information needed by economic planners and individuals differ for planners and for individuals? How? Why?
4. How does the market still work even if only some of economic actors (users in Hayek’s parlance) know of the new situation in a market?
Why, according to Hayek, can the “information problem” be solved by “the price system”?
Why, according to Hayek, is the true function of the price system the communication of information?