Abstract
The central concern of economic analysis has been to explain how a market economy generates an orderly pattern of economic activity even though there is no person or office that creates this order. The order that we observe emerges as if it were imposed by an invisible hand. Only there is no hand. Rather, many hands participate in the generation of orderly economic life. What promotes the coordinated patterns of our economic life is the framework of institutional rules within which people conduct their activities. This institutional framework is characterized mainly by the principles of private property and freedom of contract. Economics is centrally concerned with explaining how it happens that when economic relationships among people are governed by the principles of private property and freedom of contract, productive patterns of economic activity emerge and societies flourish.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
