EEE Final 2023

Benefits of human beings being social animals- Make other people better off with you than without you

Specialization makes it so that you don’t have to do everything on your own

Show up with something to offer others

Invent ways to be of service to each other

Cooperate with others

To see how other people do things 

A simple idea that a better idea may be around the corner inspires others

Cooperate for mutual benefit 

Ethical decisions- every business decision is an ethical decision 

Need integrity or being true to yourself 

Most major decisions businesses make

Ethics- the subject of how people live in order for the world to be a better place with them than without them (cause and effect)

taking responsibility for knowing the facts 

Knowing the law 

Wanting people to be glad they trusted you 

Ignorance is not an excuse 

Find a way to succeed and deserve the success and make the world a better place 

Trade- value for both participants and mutual benefit 

homo sapiens were wisest and learned to make deals with strangers

Inventing ways to be of service to each other and cooperate

Make customers better off and bring things to the market 

Cooperation for mutual benefit and there are gains from it 

Positive sum 

Everyone can win-win win  

Zero-Sum game- no one gains unless someone else loses like games growing up the only way to win is to make someone else lose

Trade is not zero sum game 

Specialization- need this to have trade in large groups 

division of labor and specialization 

Each person does a different job 

don’t have to do everything on your own 

Important in the wealth of nations

Property right- flow from our basic human equality 

Help coordinate our activities

Adam smith- person, property, and promises

To have a functioning society 

John Locke- Allow people to choose what to do with potential resources 

We see entrepreneurial creativity 

Work became a contest to see who would earn the most 

Communicate for trade -communication from all parties 

Communicate through what kind of prices-equilibrium \n precondition for voluntary exchange

Reputation led to trading networks

People cooperate for mutual benefit 

Happy to be of service to each other 

Factor of Production- land labor capital entrepreneurship 

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