The World Of Economy, By Steven Levitt And Stephen Dubner

1517 Words Mar 24th, 2016 7 Pages
In the world of economy, conventional knowledge of every-day situations are challenged by those through an amoral approach which often provides controversial explanations for human actions, and behaviours. But when we eliminate values to human behaviour, economists are able to take an objective view to understand the approach; humans take in order to maximize their desires (McKenzie, Tullock, 1975). The strongest possible predictive statement used by economists to explain human behaviour is the law of demand, which explains that when price of an object increases the quantity demanded decreases and vice versa (McKenzie, Tullock, 1975). Everyone strives to maximize their satisfaction and reaching their fullest amount through the pros and cons of information, personal incentives, and ways to overcome social, biological, and environmental restraints to acquire their goals. From the ability of researching and understanding statistics, Steven Levitt and Stephen Dubner, authors of Freakonomics, prove to the readers that humans are rational beings, and are aware of the benefits and costs of their actions, and that our actions are motivated, and connected by personal motivations or incentives. In the first chapter of Freakonomics, Levitt and Dubner focus on that the reaction of cheating is that humans demonstrate in response to incentives. The basics of economics are that positive and negative implications of incentives that people respond to throughout their entire lives (Levitt,…
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