Naked Economics Chapter 2 Summary Mcdonalds

As I read through the entirety of the Naked Economics I learned many valuable things that I will use as I go throughout my life so I can make decisions that will benefit me and my family. In chapter five of the book it talks a lot about how information and marketing. One of the strategies that they explain is how we companies use advertisements to gain profits. They will appeal to youth or gender to gain a foot hold in the market. McDonalds is a great example of this: they would offer toys for the children to play with when they got their food so kids always wanted to go to McDonalds to get a toy and not necessarily the food. Now today we see that McDonalds does not emphasize toys anymore because those kids that demanded of their parents to take them there have grown up and had children of their own. So, they will take their children there also because they have gone since their childhood. Another company
It gave me a list of things I must do. First, I should save money because this money I invest should not hurt me financially if I lose it. Invest then repeat this process as many times as I want. I can also take risk after the first process works invest more in one company or pick a company I think will bring back money but I’m not certain about. I must also diversify this means I should invest in many companies because if I invest in one company and it fails I will lose everything but if I invest in many companies and one fails I should be fine. Finally, I should invest for companies that will last a long time, not just short investments. I learned many more things form this book, that will be addressed in the rest of the essay. I will inform you on the benefits and downsides of having the government involved in a countries economy. How human capital influences the economy of nations and how we can grow our own human capital. What inflation does to a country and how we can prevent the downsides of