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You get a nice raise. 7. Average wages grew by 2% last year. Answers to the Checkpoint questions can be found at the end of this chapter. Key Ideas of Economics Economics has a set of key principles that show up continually in economic analysis. Some are more restricted to specific issues, but most apply universally. As mentioned earlier, these principles should give you a sense of what you will learn in this course. Do not try to memorize these principles at this juncture. Rather, read through them now, and return to them later in the course to assess your progress.

ATM machines: Business Week, 9-2009. Value of a college degree: The Economist, 9-8-2009. Companies that are good to work for: The Economist, 2-17-2009. 4 Chapter 1 Today, many are concerned about outsourcing, globalization, and international trade. Look at this from an undeveloped country’s point of view. These things can help them rise from abject poverty to attain modern living standards. After all, the United States was once underdeveloped, and trade with richer nations like France and Britain helped us develop.

Its horn is considered a powerful aphrodisiac in many Asian countries, and a single horn fetches many thousands of dollars on the black market, creating a great incentive for poachers. Unlike other stories of endangered species, this one might have a simple solution. Conservationists could simply capture as many rhinos as possible and remove their horns, reducing the incentive to poach. Do you think this will help reduce poaching? Why or why not? 10. S. government wants people to buy more hybrid cars that use much less gasoline.

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