Class summary 10/17

Econ 10/17

Golden Rule : one should treat others as one would like others to treat oneself

(Knowledge problem)

Every country tried to organize based on this principle failed miserably

Production for profit is production for people

The only way for firms to make profit is to provide consumers service

Reciprocal Altruism

It is not selfishness that motivate people

The decision of whether the bus driver should stop or not?

Rizzo matters

All the passengers matter

(Things will matter much more in long run)

lateness causes 4% of GDP every year in Ecuador.

What is a more appropriate rule: The Silver Rule (do not do to others what you would consider unfair or unjust if they did it to you)

1.     It is perfectly okay to be charitable with your own money; it is not to be charitable with some else’s money.

2.     There is no such thing like enough profit

3.     Running a good business requires you actually to treat the employees well