Optional material for L03

1. Watch the first 60-second lesson: The Invisible Hand
2. Watch Kahn on Adam Smith @ 0:00-4:30.
3. Watch this clip from Home Town Story @ 37:00. A businessman states that he is interested in profit. He goes on to discuss that customers also seek profit (economists call this second profit consumers surplus) and that the mutually attainment of profit leads to good results.
4. Read this post to learn read how consumers are responding as the price of natural gas falls. Did they need the government to tell them to convert? Why or why not?
5. Watch this clip. It shows that no one knows how to make a pencil and explains why the market is miraculous and government control is inefficient.
6. This story describes aggregating what many people know, each of whom may know much about some things and little about other things, leads to better decisions than trying to have one person or group know everything.
7. Watch Friedman talk about how markets lead to cooperation and harmony to produce a  pencil.