Naked Economics Essay

2854 WordsJul 29, 200612 Pages
Author Wheelan writes, "Life is about trade-offs, and so is economics." Indeed, so is Naked Economics. This book promises to be a good introduction to economics for the layman. Throughout the book, the author uses easy-to-understand language and vivid examples to illustrate his points in strategic places maintaining a sense of lightness with the readers in reading the material. Here is a summary of each of the 12 Chapters of the book Naked Economics: Undressing the Dismal Science by Charles Wheelan. CHAPTER 1 - The Power of Markets: Who feeds Paris? The first chapter begins with an interesting story about how an advertising strategy by Coca Cola Europe proves to be a losing proposition at the start of 1989 but ends in impressive…show more content…
CHAPTER 4 – Government and the Economy II – The army was lucky to get that screwdriver for $500. In this chapter, Wheelan shares two lessons about the role of government in the economy. These are: First, he states that "the government must not be the sole provider of a good or service unless there is a compelling reason to believe that the private sector will fail in that role." He expounds further that the government will be freer to take care of things that need to be really handled by the government. There are things that the government should not be doing because when it dips its hands on that, it will presumably be inefficient. He cites the example of postal mail. He posits that the technology today has radically changed and things need to be implemented differently. The second point is that even if the government has an important role to play in the economy, it need not be the actual one to do the work (p 66). CHAPTER 5 – Economics of Information: McDonald's didn't create a better hamburger This chapter deals with the essence of information, how one acquires it, what one does with it, and how one makes decisions based on the information at hand. This fact is so basic and important, yet one can take this for granted. Wrong judgments and decisions occur when one needs to make a decision
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