ADMS 1010 Lecture Notes - Lecture 5: Invisible Hand, Exchange Economy, Economic System
11 Feb 2018
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Economics the social science that studies the processes that govern the production, distribution and consumption of goods and services in an exchange economy. Factors of production land, labour, and capital. Self-interest: (cid:862)it is (cid:374)ot from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities, but of thei(cid:396) ad(cid:448)a(cid:374)tages. (cid:863) Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. (cid:863) (cid:862)margi(cid:374)alist(cid:863) revolutio(cid:374)aries the father of modern economics.
