Naked Economics: Undressing the Dismal Science
The economy is a very complex system in which consumers and retailers spend sufficient time to make themselves as wealthy as possible. In the chapter, the cost of something is giving up something to receive a product or service usually more than just money. Companies use different strategies to maximize profits like for an airline to distinguish between a business traveler versus a pleasure traveler. The concept of Supply and Demand is introduced with the example of a tuna fish and a salmon with the popularity of the tuna the supply of tuna goes down raising the prices of tuna. The concept of cost is appealing in that people will use a product less because of the price. For example the birth rate is 45% lower not from costs to buy food or clothing, but rather from a parent having to leave the workforce to take care of the baby. When it is all said and done the more profit the more the economy thrives. I agree with the author, because even though human intentions are selfless at the end of the day people will put themselves over other people in order to make more money. The companies with better strategies will succeed in the corporate world and will ultimately remain on the top of the business world. Chapter 2
In most countries, incentives are what drive people to work and keep the economy running smoothly. The motivation is present when incentives promote self-interest which sometimes benefits the whole world for example Bill Gates dropping out to find Microsoft. In the market, to achieve compliance by individuals the incentives must benefit a person.