What is it about Fed-Ex that gives you the confidence to ship valuable goods?
-Feedback loops
-There are serious consequences if Fed-Ex fails
-Competition is one of the reasons feedback loops work
-When Fed-Ex fails, they have to care about failing, their workers need a moral conscience, therefore it is in Fed-Ex's interest to hire a trustworthy person.
Trade & Specialization
-We don't just trade goods we trade "property"
What's the point of economic activity?
-World has scarcity
-We want "stuff"
How do we decide what to provide society? The Economic Challenge
-Production Questions
-Allocative Questions
What is economic activity?
-The second you decide to not do something for yourself is economic activity, spending transaction in the market.
Three Aspects to Spending:
1. Specialization
2. Exchange
3. Discovery
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