Economics is about incentives, and the prospect of getting rich is a big incentive. Taxes make investments less attractive because they are a cost. Studies show that the most talented teachers are the most likely to leave the profession early because incentive structures leads them elsewhere, the least talented teachers incentives are just the opposite.
Decreasing costs, increases demand. Regressive taxes are those which fall more heavily on the poor than the rich. Below I summarize some notes: Chapter 9 - Keeping Score GDP represents the total value of all goods and services produced in an economy. This can all result from regulations with good intentions.
It is what you would be left with if someone stripped away all of your assets and left you on a street corner with only the clothes on your back. Chapter 1 - The Power of Markets The free market aligns self interest with improving the overall standard of living for most members of Naked economics chapter 6.
The lump of labor fallacy is the mistaken belief that there is a fixed amount of work to be done in the economy and every new job must come at the expense of a job lost somewhere else.
The most talented teachers are likely to be good at other professions where pay is more closely linked to productivity.
Firms and consumers act in their own best interest. Every activity generates an externality at some level.
Also known as the law of unintended consequences. Governments that run steel mills, coal mines, banks, and airlines lose the benefits of competition.
Utility can be intangible. Regressive taxes are those which fall more heavily on the poor than the rich. Productivity is the efficiency with which we convert inputs into outputs.
If policies aimed at protecting weak outdated technologies prevail, they slow the economy. As more professional opportunities become available to women, the costs of having children rise.
Profit inspires some of our greatest work. As the advantages of having more children declined, people began investing their rising incomes in the quality of their children, not merely the quantity. As costs increase, demand falls. The firms who contribute put themselves at a cost disadvantage against their competitors.
Policymakers did not anticipate that people would buy new cars and hold on to older cars with poor emissions to continue driving.
Inthe typical household required 1, hours of labor just to acquire its annual food supply; today, it takes about hours of work. Fishermen who hunt without constraint can deplete a fish population. The more you save and the sooner, the more rent you can command from the financial markets.
Scandinavia has seen high marginal tax rates contribute to growing black market economies. High levels of human capital leads to well-educated parents who invest heavily in the human capital of their children.
Consider a businesses which initiates an economic revitalization in a neighborhood. The government should 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.
Human capital separates the haves from the have-nots. Suitable areas include public health, national defense. The market it amoral, it does not provide goods that we need but goods that we want. Fishermen who hunt without constraint can deplete a fish population.
The costs are spread over the remaining 98 percent of us. Deadweight loss refers to taxes which make individuals worse off without making anyone else better off.
Invest for the long run The odds are stacked in your favor if you are patient and willing to endure the occasional setback. It enables us to live better while working less.Naked Economics is one of those books that changes the way you see the world.
Below I summarize some notes: Chapter 1 - The Power of Markets. The free market aligns self interest with improving the overall standard of living for most members of society. Economics is about incentives, and the prospect of getting rich is a big incentive.
wage gap Many economists argue that we should not care about the gap between rich and poor as. Naked Economics is one of those books that changes the way you see the world. Below I summarize some notes: Chapter 1 - The Power of Markets. The free market aligns self interest with improving the overall standard of living for most members of society.
Chapter 6 Balancing the Market The point at which quantity supplied come together is known as Equilibrium Market Disequilibrium If the market place or quantity supplied is anywhere but at the equilibrium price, the market is in a state called disequilibrium Excess Demand Occurs when quantity demand is more than quantity supplied Excess Supply Occurs when quantity supplied exceeds.
Naked Economics Ch. Summaries Essay; Naked Economics Ch. Summaries Essay. Words Mar 5th, 4 Pages. Chapter 1 The Power of Markets Charles states as his number one point that economics is really unpredictable. He uses the Coca-Cola Company as a fine example for this.
Naked Economics Chapter 1 Words | 4 Pages. Start studying Naked Economics Ch. Learn vocabulary, terms, and more with flashcards, games, and other study tools.Download