SS101_ECONOMICS TEAM LECTURE

SS101_ECONOMICS TEAM LECTURE - ECONOMICSTEAMLECTURE SS101 I.

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS TEAM LECTURE SS101 I. a. Invisible Hand= Economic Forces= Sum of Individual Choices i. Smith argued in this book was against interference in the market  place ii. Smith was arguing that if you take the interference, natural laws  would be able to operate through the benefit of everybody  iii. More productive economy   more prosperous society  iv. Economic forces- total of individual choices that will amount to  economic forces that will affect the behaviors of other players in the  economy. In the long run more people will be able to get what they  want  v. Creates competition if they compete against themselves  vi. Ironoic aspect of smiths argument: if you allow individual people to  persue their own individual self interest, then the whole society is  going to benefit  1. Individual greed will create human welfare  b. Assumptions: full information, rationality, no barriers to entry i. Based his idea on certain assumptions that are not necessarily true 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

SS101_ECONOMICS TEAM LECTURE - ECONOMICSTEAMLECTURE SS101 I.

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online