“Naked Economics” by Charles Wheelan
Economics is on fundamental level of the study of scarcity. Human desires are unlimited, but resources aren’t and every society tries to figure out how to allocate its resources for maximum benefit. The field of economics attempts in large part, to help understand these resource allocations and decisions. Resources allocated largely according to the forces of supply and demand, and prices serve as incentives to determine how much of a product a company wants to produce and how much people want to buy. Economics can also be looked at as the study of incentives or the study of household business making. Due to such a large variety of information, economist begin to attempt solving a problem by stating “it depends”. These two words are widely used in the field of economics and foremost the most important two words we see in the book “Naked Economics” by Charles Wheelan. These two simple, yet widely used words are portrayed and used greatly through out each chapter by the author giving a simple explanation of how certain scenarios differ and are different from one another based on certain situations.
The first four chapter of the book are and understanding of introducing you to what economics and giving you a brief understanding of how it works, such as the importance of incentives, and the ways economist tackle certain scenarios. The first few chapters introduce many questions, but most importantly ask “Is the Government making our economy better”? This is highly debated throughout and it all boils down to the two words “it depends”. When the government owns a certain part of a part of business, the government has no motive to “do a good job”. For example companies owned and run by the government such as places including the DMV, public health facilities, and hospitals used by people who have insurance given to them by the government, have no incentive to “do a...