Invisible hand

Youth bulge
Freaconomics
Milgram experiment
- Asch => confirm to the majority
- Milgram => confirm to the orders => no pressure
Deductive reasoning
- No uncertainty
- All problems with assumption
Inductive reasoning
- Many single observations => make them become general rule
- Uncertainty
- Because you have to observe a lot of element, you see other persons
- Unobserved element will change the general rule
- Phillip curve, inverse relationship between the umemployment and the inflationPARETO optimal
Who makes the law? The parlament (quốc hội)
What is ethical relativism? The theory that what is right is determined by what a culture or society says is
right.
Asch confirmaty experiment: if a majority of the group say number 3 is correct, the rest says yes
 Do we confirm to the majority
 We want to belong to majority 60%, 20% or 20% belongs to the other option
 Group dynamic
Ponzi scheme
- Money in (from the investor)
- All money invested out
- Need the new investor to pay the interest for the old investor
- Example: pension
- Unmoral
Utalitarinism
- Redistribute wealth
- Tax and subsidity
- Big picture in economy: redistribution
- PARETO optimal
o Making some better off without making some worse off
o Two people have different view of point and then they trade
o Differences don’t matter, the orders matter
o All utility functions are same if they keep the order
Kant’s ethics
- Categorical imperative