Naked Economics by Charles Wheelan gives the reader a basic understanding of the different aspects and workings of economics. Economics deals with incentives, which are reasons people may want to do something whether the end result be positive or negative. Another of the author’s points is that some governments are sometimes inefficient systems that pass regulations which limit consumers, however they are necessary. Lastly Wheelan states that everything one does, costs in some way.…
The principles of economics influence people’s lives every day. Consumers make purchases driven by need for food, gasoline, and a myriad of other goods and services to sustain their daily lives. Economists have made a career developing theories attempting to quantify the rationale of consumption.…
Common Sense Economics is packed with valuable information, and approaches presenting this information in a way that is less dry than a conventional textbook. Although there is a lot to learn in this book, I feel like I have already been introduced to 90% of the content in class, this book is simply a supplement and review. The book is broken down into 4 sections: Ten key elements of economics, Seven major sources of economic progress, Economic progress and the role of government, and Twelve key elements of practical personal finance. I believe the discussion of personal finance outlined in the fourth section, while important, is outside of the scope of this course and will therefore not be discussed in this paper.…
Author Wheelan writes, "Life is about trade-offs, and so is economics." Indeed, so is Naked Economics. This book promises to be a good introduction to economics for the layman. Throughout the book, the author uses easy-to-understand language and vivid examples to illustrate his points in strategic places maintaining a sense of lightness with the readers in reading the material. Here is a summary of each of the 12 Chapters of the book Naked Economics: Undressing the Dismal Science by Charles Wheelan.…
McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics. Principles, Problems, and Policies (18th ed.). Retrieved from the University of Phoenix eBook Collection database.…
Budgets are used by businesses and individuals to ensure that the end result is positive. A budget is basically a plan used by businesses and individuals to ensure enough money is available for current and future commitments and projects. The information presented in this paper will discuss flexible budgets, the relationship between fixed and variable costs used in a flexible budget, and the differences between static and flexible budgets and how a flexible budget lends itself to a cost-volume-profit analysis.…
Henry Hazlitt's book, Economics in one lesson, brings to perspective numerous topics that are mainstream issues in the economy today. His book breaks down in detail specific concepts that have their effects on the economy. Hazlitt explains topics such as war and the expenses, the tariff system, and productivity and the minimum wage laws.…
“One of the most powerful laws in the universe is the law of unintended consequences” (Levitt, S. 2009) This is one of the primarily premises that the book establishes, with an extraordinary sense of humor and interesting data, Steven and Stephen set us in the real economics world, in which the common factors that all the teachers show to their students are applied in such a way that the real job is getting done. The way the authors write all the interesting facts of today´s modern life, including correct and simple explanations, so that anyone can understand all the topics without having doubts of the concepts and of the more difficult topics of economy. The examples they give provide us a fun way of learning, and of expanding our thoughts far beyond the theory of economics. Throughout the book, we are exposed to historical, political and sociocultural aspects of the example given, not only to give the reader a complete background, but also to make the reader get involved into the facts that are exposed. This book also give us a chance to be reflexive about almost every aspect that we normally do not bother to think of, for instance, the ordinary task of donate money, rather than be a real help to others, people use donations to make them feel more comfortable with themselves, for recognition from the local newspaper or from that cute girl that asked us a coin for any purpose.…
Economics started with the ideas of Adam Smith. He is credited as the first true economist. He had never taught nor took a class in economics. In his book The Wealth of Nations Smith alludes to the idea that self interest motives allows a nation to prosper entirely. People do something in order to gain something. Without any gain, people would be hesitant to start business or political ventures. These acts of selfishness make for a successful nation. From this ideas Smith created the theory of the “invisible hand”. This particular theory is related with the concept of supply and demand. The more goods there are to sell, the less people want; the goods are sold at a lower the price. If there are less goods people want it more, which leads to a significant increase in the price. This result in the market regulating itself; the ‘invisible hand” keeps the market afloat. Smith also emphasized on competition within the market. Without competition there would not be an “invisible hand” because a company turns into a monopoly. The monopoly controls the prices and leaves consumers without choice.…
The book, Common Sense Economics written by James D. Gwartney, Ricahrd L.Stroup, Dwight R. Lee, and Tawni Ferrarini, gives a simple insight for reader into the inner workings economics in a common sense terms. The main point of the book is that to have economic success comes from low interference from the government, the motivation of individuals, and competitive markets.…
In fact the book starts out with the fact that many Americans do not understand the principles of economics and how they apply to virtually everything we do. The four authors harmoniously work together to help alleviate the epidemic problem they see as an economic illiterate nation. Alleviating the stress associated with understanding economics, the book reads in a simple and easy to understand format. In four parts, the book introduces the reader to the elements of economics, sources of progress, the role government plays, and practical advice in personal finance. It will teach readers principles that can be applied to not only personal finances but to how economics and policy are intertwined and inseparable. In doing this, the book provides lessons that will create well informed citizens about the competing visions to the role in which government plays in the lives of Americans and the economy as a…
“To have a working understanding of economics is to understand the largest part of life. We pass our years, most of us, contemplating the relationship between the money we earn and the money we need, our thoughts suspended, as it were, between the two. Economics is about what we earn and what we get for it. So an understanding of economics is an understanding of life’s principal preoccupation”.…
"Naked Economics: Undressing the Dismal Science" by Charles Wheelan is a book that takes a subject like economics and puts it in layman’s terms so that almost any reader can comprehend what makes an economy, and what it takes for an economy flourish or fail. Naked Economics offers insight into morals, ethics, and regulations associated with economic decisions.…
I distinctly remember working part-time at Starbucks, and there realizing all of the economic theories at play. Two of my coworkers worked separately, but towards the same end, exercising their comparative advantage. I later watched as happy hour rolled around, and demand suddenly skyrocketed as our prices dropped. It was deeply impressive to see the seemingly complicated subject of economics so clearly demonstrated in my minimum wage job. I was only a month into my first microeconomics course, but I had already made the decision to declare myself an economics major. I have always been, I think, deeply interested in what drives our world. So it was only natural that in listening to my professor explain the pricing of goods and how labor was…
Henry Hazlitt's book starts with a single lesson-that economics means looking beyond the immediate effects of any act or policy to the consequences of it for everyone. The rest of the book is a series of short chapters giving examples of the application of this lesson.…