January 9 notes - January 9 2006 Economics Foundations and...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
January 9, 2006 Economics: Foundations and Models Chapter 1 What Happens When U.S. Firms Move to China? It is cheaper for U.S. firms to operate in China. This process of firms producing goods and services outside of their home country is called outsourcing (sometimes also called off-shoring ). We use economics to answer questions such as: How are the prices of goods/services determined? How does pollution affect the economy, and should the government deal with it? People must make choices as they try to attain their goals. The choices reflect the trade-offs people face because we live in a world of scarcity . Scarcity: the situation where unlimited wants exceed limited resources available to fulfill those wants. Economics : the study of choices people make to attain their goals, given their scarce resources. Economic Model : simplified versions of reality used to analyze real-world economic situations.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern