Principle to Practice

Market Effects on Profits

Market Effects are the result of changes in the local incentive structures and patterns of opportunity caused by the introduction of new resources. The new resources noticeably affect incomes, wages, profits, and prices so that people’s perception of economic winners and losers changes.

Profits

Interventions that source goods and services locally provide profits to local people. However, if the profits tend to accrue to members of one group over others, this can cause tensions to rise.

When profits flow to politically connected people, this can be perceived as corruption on the part of the organization involved.

Previous Page Market Effects on Wages
Next Page Market Effects on Prices

Related Topics
Market Effects on Incomes
Market Effects
Why do negative Market Effects happen?
Using Market Effects
Resource Transfers
Critical Detail: Resources—What do we provide?

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