MGMT 1005H Lecture Notes - Lecture 8: Invisible Hand, Payment
Document Summary
Care: rational and relationship aspects of an issue. Small, rely on traditional communal roles/customs (connected self) Command economy: central authority makes economic decision. Market economy: private individuals make economic decisions. Motivation: desire to get paid--voluntary supply/willing payor. Free market: no government intrusion, individuals voluntarily exchange goods. John locke: mixed your labor with something, it"s yours. Take time and energy to put effort into something, it"s yours. Monetize services (physical or intellectual) (voluntary consent) Distribute resources that are just and fair, maximize economic utility, and respect individual freedom of choice of buyers and seller. Market: forum where people come together for the purpose of exchanging ownership of goods or money. Free market : where the buyer nor seller has the power to significantly affect the prices at which goods are being exchanged. Full transparency, knowledge of quality, quantity, and price. The goods so similar no one prefers buyers or sellers.
