ADMS 1010 Lecture Notes - Lecture 5: Perfect Competition, Ethics, Invisible Hand

• School: York University
• Department: Administrative Studies
• Course: ADMS 1010
• Professor: Helen Pogrin

Document Summary

Thursday, febuary 8, 2018 lecture 5 (lecture 5 - questions of value) How agents act, how markets are, and underlying assumptions. This may be a mc question & topic on the midterm. The embedded view is the way economics views business strategy. Economics: so(cid:272)ial s(cid:272)ie(cid:374)(cid:272)e that studies age(cid:374)ts" (cid:271)eha(cid:448)iou(cid:396) & studies cosumption & production. Adam smith was a more of a philosopher that determined how decisions made by people impacted economics: division of labour, 1. Makes workers faster by splitting up the job, 2. Combining machines & humans to go faster: factors of production, plant, labour, capital, & entreprenuership, self-interest, people want to work to make a living for themselves they"(cid:396)e (cid:373)oti(cid:448)ated to work because of their wants. Invisible hand: self-interest influences the way the economy works, which is why laissez- faire was so big, the trickle down theory, the rich get richer, but the poor benefit too, #fake. Homo economicus: the assumptions economists make about human behaviour.