12. Epilogue to Principles of Economics
Lecture Notes
1. Changing World - Economically
a. Outsourcing B sending work out of the firm for cost cutting reasons B
generally to save labor costs.
1. Consumer incomes and production costs
2. Say=s Law B accounting identity B cost of product is factor
incomes
b. Economics and Ethics
1. Fas – ethics
2. Boni Mores - public opinion or morals
3. Lex - law
a. Law becomes dominate, but law is a constraint on the pursuit of
self-interest (same as ethics and morals)
b. Self-interest - rationality
c. Internationalization
1. Comparative advantage is the basis for trade among nations as
well as people.
68
Lecture Notes
1. Changing World - Economically
a. Outsourcing B sending work out of the firm for cost cutting reasons B
generally to save labor costs.
1. Consumer incomes and production costs
2. Say=s Law B accounting identity B cost of product is factor
incomes
b. Economics and Ethics
1. Fas – ethics
2. Boni Mores - public opinion or morals
3. Lex - law
a. Law becomes dominate, but law is a constraint on the pursuit of
self-interest (same as ethics and morals)
b. Self-interest - rationality
c. Internationalization
1. Comparative advantage is the basis for trade among nations as
well as people.
68
