Building on the earlier work of Ludwig von Mises and others, Hayek also argued that while in centrally planned economies an individual or a select group of individuals must determine the distribution of resources, these planners will never have enough information to carry out this allocation reliably. This argument, first proposed by Max Weber, says that the efficient exchange and use of resources can be maintained only through the price mechanism in free markets (see economic calculation problem). COUNT 4
QSN1 What did Hayek claim those who must distribute resources would lack most? ANS1 enough information QSN2 Whose work most notably influenced Hayek's argument regarding resource distribution? ANS2 Max Weber QSN3 What is the one way Hayek argued that resource distribution could succeed? ANS3 through the price mechanism in free markets QSN4 Other than Max Weber, who was a notable influence to Hayek's statements regarding resource distribution? ANS4 Ludwig von Mises