Hidden Order Book Review

1058 Words5 Pages
The summary of the rationality theory and price theory & the conclusion of the book.
Careful study of Friedman's new book, Hidden Order: The Economics of Everyday Life, will make the reader a better thinker and a more skilled debater, whether the topic is economics, politics, crime, or love and happiness.
Economics is not just the study of satisfying insatiable wants with limited resources, as so many textbooks illustrate. Economic science encompasses all human behaviour: people acting rationally to reach objectives. Those objectives include such everyday dilemmas as deciding which checkout lane at the supermarket will be fastest, dating and finding the right person to marry, voting, and protecting one's property.
Friedman has very
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However, we would study in detail and invest a lot of our time while purchasing a car because that benefits us more directly and has more advantage.
He also cites the naïve price theory. He explains that if a bulb company produces a bulb which gives 10 minutes of more light, the company thinks that it will lose out on sales. However, he says that for increases value to the customer the company can charge more per bulb. This way the company will keep earning the same amount of profits. He explains that lot of people forget that for an increase in the value of a product the price can also be increased in accordance and hence the same need will result in the same if not more amount of profits.
Friedman’s explanation of the arguments against protectionist trade policies is brilliant and easily understood. One simply needs to follow his explanation of two roommates sharing the responsibilities of cooking and cleaning up afterwards. His description explains why it would benefit the two to share in the work if one of the roommates was better at one job than the other – even if he/she was not better than the other roommate at either job (i.e. he/she is relatively better at a job, even if not absolutely better).
From his description, it follows that countries can benefit from trading as long as one of the countries involved is better at producing one thing than another.
The books overall theme is the rationality in deciding between the cost and the benefits of
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