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
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