Near what latitudes are the cities of Beijing and Tokyolocated?
Chapter 1: Economics Foundations and Models Sections: 1.1, 1.2, 1.4 Section 1.1: Three Key Economic Ideas Scarcity a situation in which unlimited wants exceed the limited resources available to fulfill those wants Economics: the study of choices people make to attain their goals, given their scarce resources Economic model a simplified version of reality used to analyze realworld economic situations Market: a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to serve Interact w/ markets while trying to achieve goals 3 key economic ideas: 1. People are rational 2. People respond to economic incentives 3. Optimal decisions are made at the margin People are Rational Economis