BA 101- Final Exam Guide - Comprehensive Notes for the exam ( 27 pages long!)
30 Nov 2017
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If demand increases, supply doesn"t, price goes up. Most people are firstly and foremostly interested in themselves. Invisible hand- guiding force that you want to improve your situation and improve yourself, generated from within the self. Bounded by certain moral sentiments- each of us as human beings has a certain set of inner moral boundaries that help guide the decisions we make, can be influenced by where you came from. According to smith, everyone benefits from free market: individual self-interest, promotes competition, innovation, greater value, benefits all members of community, not just each individual. More products, new products, lower prices: yields: efficient allocation of resources especially through division of labor. (specialization of tasks matched to each individual"s skills). By dividing labor, everyone has a specific task in order to produce more: free market requirements, private property, freedom of choice, fair competition, right to keep profits. Ba 101: day 2: wealth of nations.
