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[link] also shows that many medium and low income countries around the world, like Mexico and China, have also experienced a surge of globalization in recent decades. If an astronaut in orbit could put on special glasses that make all economic transactions visible as brightly colored lines and look down at Earth, the astronaut would see the planet covered with connections.

So, hopefully, you now have an idea of what economics is about. Before you move to any other chapter of study, be sure to read the very important appendix to this chapter called The Use of Mathematics in Principles of Economics . It is essential that you learn more about how to read and use models in economics.

Decisions ... decisions in the social media age

The world we live in today provides nearly instant access to a wealth of information. Consider that as recently as the late 1970s, the Farmer’s Almanac, along with the Weather Bureau of the U.S. Department of Agriculture, were the primary sources American farmers used to determine when to plant and harvest their crops. Today, farmers are more likely to access, online, weather forecasts from the National Oceanic and Atmospheric Administration or watch the Weather Channel. After all, knowing the upcoming forecast could drive when to harvest crops. Consequently, knowing the upcoming weather could change the amount of crop harvested.

Some relatively new information forums, such as Facebook, are rapidly changing how information is distributed; hence, influencing decision making. In 2014, the Pew Research Center reported that 71% of online adults use Facebook. Facebook post topics range from the National Basketball Association, to celebrity singers and performers, to farmers.

Information helps us make decisions. Decisions as simple as what to wear today to how many reporters should be sent to cover a crash. Each of these decisions is an economic decision. After all, resources are scarce. If ten reporters are sent to cover an accident, they are not available to cover other stories or complete other tasks. Information provides the knowledge needed to make the best possible decisions on how to utilize scarce resources. Welcome to the world of economics!

Key concepts and summary

Societies can be organized as traditional, command, or market-oriented economies. Most societies are a mix. The last few decades have seen globalization evolve as a result of growth in commercial and financial networks that cross national borders, making businesses and workers from different economies increasingly interdependent.

References

The Heritage Foundation. 2015. "2015 Index of Economic Freedom." Accessed March 11, 2015. http://www.heritage.org/index/ranking.

Garling, Caleb. “S.F. plane crash: Reporting, emotions on social media,” The San Francisco Chronicle . July 7, 2013. http://www.sfgate.com/news/article/S-F-plane-crash-Reporting-emotions-on-social-4651639.php.

Irvine, Jessica. “Social Networking Sites are Factories of Modern Ideas.” The Sydney Morning Herald . November 25, 2011.http://www.smh.com.au/federal-politics/society-and-culture/social-networking-sites-are-factories-of-modern-ideas-20111124-1nwy3.html#ixzz2YZhPYeME.

Pew Research Center. 2015. "Social Networking Fact Sheet." Accessed March 11, 2015. http://www.pewinternet.org/fact-sheets/social-networking-fact-sheet/.

The World Bank Group. 2015. "World Data Bank." Accessed March 30, 2014. http://databank.worldbank.org/data/.

Questions & Answers

what is demand
Prince Reply
what is market mechanism
thammy Reply
how do you find the marginal line given the input and output?
Greatson Reply
population density
Thompson Reply
what is monopoly
Thompson
what is elasticity of demand?
tunde Reply
Elasticity is a central concept in economic , and is applied in many situations. Elasticity can provide important information about the strength or weakness of such relationship. Elasticity refers to the responsiveness of one economic variable such as quantity demanded, to change in another variable
Lena
such as price. #Price elasticity of demand:which measure the responsiveness of the quantity demanded to a change in price. #cross elasticity of demand:which measure the responsiveness of quantity demanded of one good to a change in the price of another good.
Lena
what are variables
Lekan Reply
marginal cost
Seyi Reply
division of labour
Abdulmumeen Reply
explain Qd=601/3p
mahmud Reply
what is unemployment
Ernest Reply
what is the formula for average revenues
EMMANUEL Reply
please 7 implications of Lionel Robbins definition of economics
Amaka Reply
Problem of economics to the society
Gmzaeeyan Reply
Within 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years? Draw a graph to show the data.
Daphne Reply
law of demand is explaining why the demand curve is downward sloping
Tan Reply
the graph would be x axis is quantity and y axis is price, as the price is expensive, there would be less demand therefore less quantity anf vice versa, thats why demand curve is downward sloping
Tan
and*
Tan

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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