Armchair Economist book report Essay

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Economic theories are as wide as an economist's vision to think. In the
Steven Landsburg book The Armchair Economist - Economics and Everyday Life,
Landsburg takes many of these economic theories and relates them to everyday type scenarios and makes them understandable to a beginning economist. He breaks his book into six sections each relating to different types of economics, from personal to national theories. Landsburg talks about the power of incentives in his first chapter. What he is referring to is how incentives drive peoples decisions to do things in life.
He makes an analogy that Seatbelts kill. This statement refers to the added protection one gets from wearing a seatbelt, which will entice someone
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price their tickets too high chances are they may not sell out and also limit the number of consumers who are capable of purchasing these tickets. Pricing a ticket correctly can also lead to sales of more tickets and additional products. With buying a ticket at a reduced price leaves the fan with more money (consumer surplus) to purchase more items, possibly cd?s, shirts, posters etc.
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> Although taxes are a necessity in American society Landsburg discusses how they are bad in relation to the economy. He explains how ?Deadweight loss? is costly to both the consumer and the seller. These taxes tend to take money out of the economy and make it less efficient. There are a number of different ways to look at deadweight loss. Everyday we as consumers have to deal with this
Deadweight loss. When we go to buy gasoline (which by the way is ridiculously priced right now) there are many taxes that have been imposed on each gallon.
These taxes restrict us consumers from taking that money and spending it on something else that we would much rather have or need. Another way the economy experiences this deadweight loss is in the mere fact that consumers may not purchase and item due to the overall cost with the tax. A consumer may be willing to pay 5.00 for a burger but with the tax it takes the total cost to
6.00. The consumer does not buy. This in turn takes that money out of the economy for the moment.
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