Chapter 1

6) A significant passage on how technology is changing pricing was both interesting and relevant to a recent dilemma. This passage (bottom of pg. 19) reminded me of how Target's credit card security system recently got hacked into. I don't know all of the details of  the story, but I do know that the hacker(s) were able to aquire credit card numbers of anyone who swiped their card at Target and sell them on the internet. Like many other stores, Target has their own special card that you save a certain percentage depending on how much you spend. Credit cards individualized to stores draw in consumers because we think we will be saving money. Consumers are blinded by the appeal of "saving 10% everytime you shop" when really, the company is collecting data by observing your shopping patterns to make it seem like you are getting the best deal possible.
"Grocery stores appear to be the model of one price for all. But even today, they post one price, charge another to shoppers willing to clip coupouns and a third to those with frequent-shopper cards that allow stores to collect detailed data on buying habits" (20).
Technology is changing the way we shop and making it easier to meet the demands of consumers with tools such as "frequent-shopper cards".

Ch. 1 Q. 7

"Economy is the art of making the most of life."
I think one of the reasons I'm enjoying Econ right now is because it deals with real life problems. On page 7, talking about South American villagers who are "destroying" their environment to save themselves (when they're really only putting their resources to good use) is something that angers and "disgusts" certain Americans. Why should it? I understand caring for the environment is something even God commands us to do, but we need to care for our environment, not other nations' environments before our own, people and environment. I think that is something Americans are also stereotyped for is being too nosey with other nations. I love the way he puts it on page 8: "It is simply bad economics to impose our preferences on individuals whose lives are much, much different." 
Cost is not just money; it is something I hadn't really thought about before. Nothing is free because if it didn't cost me money, it probably cost me time or labor or something else. And the idea that raising the cost of something makes people buy/use less of it is huge when we think in terms of the power and influence that advertising uses to get people to buy their product while competing with another company. It's amazing to me how much economics drives everything we do, no matter what, it's still relevant to some degree. We've got to weigh the cost of everything we do in order to get "the most out of life."

Chapter One

6). One section of this chapter that particularly struck me was the vast economic differences present within our world and within our own country. We all see those businesses that seem kind of ludicrous (such as dog-only bakeries) that feed into our "need" for luxury. Yet people are starving all over the world.  Economics must play into this tricky question. This is something that is very frequently discussed and for once, Charles Wheelan produced an answer that made sense. It's one of the most basic economic assumptions, that we all act in our own self interest to better ourselves and our conditions. But why do we buy "luxury goods"and donate more money to conservation projects like the rainforest as Wheelan states? Because we can! We already have our basics (if we are purchasing these goods and donating money) and it feels like we are bettering our own conditions by doing so. He then raised the question as to why we are giving our two-cents to the lives of those in underdeveloped countries inability or lack of concern with their natural surroundings. They can't be concerned because they still need to pay rent, buy food and water. They can't look to buy a luxury or see the importance of saving the rainforest because if they don't provide for their family it won't matter to them. This could be their only available way to make any money. How can you condemn that?  If more developing countries received economic aid and basic care, it might actually be able to save the rainforest and the Bengal Tigers.

Chapter 1

3.
An issue that I found interesting was the "price discrimination" because it seems like it could lead to bad things in the future. I believe raising the prices in certain areas and for certain people could end up being bad in the future. These companies can target who they want to charge more to based on their spending habits in the past. This doesn't seem fair to me and I could see someone creating a big deal about it and they will go after the company that screwed them over. Then the company may have a potentially huge problem on their hands. The chances of this happening are a little extreme maybe, but it seems like anything could happen these days. The short-term benefits are great for the company. They will take a lot of money from someone and the more money the better! I find it frightening that a company can control how much someone will pay depending on their past spending habits. It doesn't seem fair to me and I think that is a lot of power for a company to hold. They can control part of our spending lives, which doesn't sit well for me.

Chapter One

Q6

To me, the idea of balance in one's life is especially interesting. From the bottom of page nine onto page ten Wheelan talks about the advantages and disadvantages of how people choose to live their lives. He uses the example of a college student being broke and living on ramen noodles because in the end a four-year degree will in a sense "pay off" all the ramen noodle meals. He also uses his own personal example, his brother who worked crazy hours at his job. They both decided to sign up for a class but because his brother worked so much he missed every single one of the classes. The reason that I find this concept so intriguing is because of the different view points so many people could have on it. Making this same situation applicable for high schoolers would be activities such as; work, school work, and spending time with friends. Depending on how valuable each activity is to any given person could dictate how that person spends their time. Some would see work as most important because of the monetary value, whereas others would see spending time with friends who they won't be with next year as much more valuable in a sentimental way. However, I think that a balance of these things leads to the best outcome. As well as providing a means to pay for the things that you do with your friends, a job makes you appreciate the time you have with your friends even more. Working too much would result in not having any friends left to hang out with. The balance in life between work and play isn't something that I had thought much about which is why I found this interesting.

Chapter 1

The passage reading, "We care about the fate of the Bengel tiger because we can...," sums up our contries actions entirely.  This is saying that because our country has the money, or acts like it has the money, to simply throw around, we take advantage of it and drift away from the necessities.  We put so much money into going green and bettering the environment, paying athletes millions upon millions of dollars to hit a ball with a bat, and have independent companies making cakes for dogs because we can!  In other countries, that is not an option.  They are forced to conserve their money withoup the choice of branching out and spending it on luxury things.  In all honesty, America should start living a little more realistically and realizing that we are trillions of dollars in debt, but that is most likely not the case.  This is America for christ's sake!

Chapter 1 - Selfish Economics and Film class

 Response to question 7:
This chapter brought up a myriad of economic questions and answers. The author again followed the pattern of giving tangible ideas that were easy to follow and provided enough depth to get the main idea across with the proper economic vernacular. One of the chapters focuses was towards the thought of economics was selfish, or self-seeking because of the fact that "individuals seek to maximized their own utility" the author goes on with useful examples. The author uses counter examples that refute this claim which changed my way of thinking. I now see that economics isn't about selfishness, but being well off enough to do what you please with your "utility". Whether it be donating your income to charity, getting vaccinations for yourself, or paying taxes. Another small sub point that brought up something about the most scarce resource, which was time. The potential resource that time could be is limitless. It could be more income, volunteering, or play time. All of the above is possible with time. The authors example of the film class he and his brother signed up for comes to mind. He has a much lower paying job, but instead of money he has free time to do fun things like a film class or spending time with his family. The thing I took out of it was that I have a desirable and limited resource and I need to choose wisely what to do with it, if I want to think economically.

Chapter One: The Power of Markets

What struck me most about this chapter was the complexity of the issues at hand. On the surface there are many economic changes and choices that seem as if they should obviously be made. For example my initial thought when reading was, "duh we should take a portion of Brad Pitt's income and give it to people who need it to survive..." but there are issues with that idealistic plan. Less money for dreamy Brad means he may not star in the next Academy Award-winning movie. That means that thousands of upset teenage girls won't attend. They won't spend their money on tickets, popcorn or candy. The junk food companies (for lack of a better word at the moment) won't meet their quota and some family who is already barely making ends meet will lose their home because Dad got laid off. So that may have been a stretch but it gets the point across. Every single issue addressed has looming opportunity costs. When you begin to think this way it becomes very difficult to make decisions (at least in my head it is). How much discussion and debate went into airline companies' decision to lower ticket prices, but also lower the quality of your flying experience? There seems to be a solution for many of the economic problems our society faces, but always at a price. It makes me want to have all the information necessary to make an informed economic decision. (not that I will ever have to decide what happens with Brad Pitt's salary).

Chapter uno~The Power of Markets - Who feeds Paris?

Throughout the first chapter, Wheelan intertwined many examples continually within the whole reading. One of these examples that stood out to me was the idea behind the safety of motorcycles, airplanes, and how the number of fatalies increased when the prices of gas were raised. "...That every $1 increase in the price of gasoline is associated with an additional 1,500 motorcycle deaths annually" (23).  Wheelan continues with the Harley example only to tie into the lesson that "...if the person making that decision doesn't understand the true risk involved, then it may not be a rational trade-off after all" (26). He uses this overarching example to explain how many everyday activities and situations all rely on rational trade-offs, whether we want them to or not.

Ch 1: Preferences

The chapter talked in length about exhausting your utility and how much baseball players make, but what stood out to me even more was the discussion on the contrasted preferences between cultures. "I nearly knock over my Starbucks latte in surprise and disgust." Wheelan explains that he said this after he heard that South American villagers were cutting down rainforest. Then he says "But I am not they "(7). These powerful and somewhat sarcastic statements resonate with me because it is not so obvious to us lazy Americans that the world doesn't revolve around our materialistic society. As I was reading the beginning of the portion of this chapters I,myself, thought about economics as a means to benefit my own atypical American life, but this portion highlighted economics as universally applicable.  Economics doesn't have to be about businesses or politics or whether not I should get a donut or a cupcake; economics is flexible to any culture system.

Chapter 1

I agree with Claire that it's ridiculous how much athletes get paid when that money can be given to people who need it way more, but Wheelan seems to make sense of it on page 15 when he's discussing Lebron James. How you only need to be slight better then someone else to make more then that person because in big markets, the small differences can be the difference in making a bigger share of the market. Lebron James may not deserve all that money but the cavs are willing to pay him that much more because he's the difference in how much their organization is going to make in the long run, also how much the NBA will make in the long run through TV ratings, ticket sales and merchandise. In theory the Cavaliers have a choice of how they want to spend their money, they could give a bigger chunk to charities rather then to Lebron James. That comes as a trade off considering that they may be doing the right thing by giving to charity but less money means less of a chance they can sign Lebron and give their team a better chance to win and bring in revenue.

Chapter One

I agree with what Brianna said but I would have to raise the other point that Wheelan proposed on page 13. "Why did the entrepreneur cross the road? Because he could make more money on the other side". In this chapter the idea of money was brought up many times. At the end of the day money is what almost every American is working for. No one can live without money. A very interesting point was when Wheelan brought up the fact that we pay baseball players millions of dollars yet half the population is living on two dollars a day. Why can't we pay baseball players less and give more money to the poor people? That seems like the most rational thing to do. Like I said above it all comes down to money at the end of the day not doing the right thing, which is disappointing.

Chapter 1 - The Power of Markets: Who feeds Paris?

"We have an answer to a profound, age-old philosophical question", states Wheelan, "Why did the chicken cross the road? Because it maximized his utility". I find it interesting how since this is thought of as the beginning of a joke, many never consider it a serious question up for debate. I appreciated Wheelan's answer and found it intriguing. Since we are never given more than the question, our mind is allowed to wander as to why and how and when the chicken crossed the road. Was the grass greener on the other side? Was it a city road or a country road? Was it by chance? We can ask any question we want, but the "why" still remains. Every animal, whether human or not, makes decisions based on their needs and wants of survival and/or luxury and thus it is an appropriate answer - and clever at that.

In general, I find the decision to pass out free bottles of Coca-Cola to people in 1989 during the fall of the Berlin Wall intriguing and memorable. It was a fast and smart decision - one that gained them a huge popularity in the market and boosted their reputation. I appreciate the attitude of the people who authorized this, even if it wasn't out of the goodness of their hearts. They saw an opportunity and took it. To react quickly in a large situation with a small window of opportunity is difficult to do and they not only gave out free coke, but also began to build their product empire for the years to come - creating many more jobs able to feed more families in the future. That, in my eyes, is admirable.

Introduction

Since the first reading was the introduction, I could tell that the author kept it very simple. He gave us many examples of the long-term effect of various situations. The one example that stood out was the extended stays at hospitals. The example showed how economists in general think of the whole instead of the one, a basic rule of economic thinking. It also showed the application of that economic thinking. The thought provoking examples really got me interested in what the author has in store for the following chapters.

Since the first reading was the introduction, I could tell that the author kept it very simple. He gave us many examples of the long-term effect of various situations. The one example that stood out was the extended stays at hospitals. The example showed how economists in general think of the whole instead of the one, a basic rule of economic thinking. It also showed the application of that  economic thinking. The thought provoking examples really got me interested in what the author has in store for the following chapters.

Introduction

2) One of the issues mentioned in this introduction particularily stood out to me. The examples the author gave to illustrate this issue directly related to my life—both on a daily basis and in the future. The author describes how individually, we cause problems that society has to pay for, illustrated by the example of transportation. "Individuals don't get the bill for this behavior, but society does—in the form of air pollution, global warming, and urban sprawl" (xxvii). This example relates to me on a daily basis because I commute to school everyday (a 20 minute drive). Each individual contribution to the society's "bill" quickly adds up and causes pollution and global warming. Not only does the issue of transportation relate to my life now, but also looking ahead to the future. I need to think about how I can cut down the society's "bill" as a whole by reducing my small contribution which could include adjusting to my future workplace (finding a house nearby, etc.).

The best introduction

2. 
The fact of the matter is that this stuff directly effects me in many ways and always will. Sooner or later in my life I'm going to have to really understand how health care works and what will benefit me the most. In a situation where say there is a presidential election and each candidate had a different plan for it, whoever is elected, that plan will directly effect my life so it's really important that I understand economics will play out with each candidates plan. 

introduction analysis

The introduction gives the basis to the principles of economic thought. It thoroughly evaluated the applicability of economic thinking, and emphasized how it affects every person. Reading this introduction sparked my curiosity into the boundaries of economics. He gives examples on why economists thoughts are so successful but where does the line end? Do economists stretch their theories too far? How can one tell what is a correct theory to advance into? What also interested me was how he concluded the introduction saying economics is too important and interesting to be only studied by experts, which provides a reason to think thoughtfully about the book.

Introduction

6.

Reading this introduction was very different than reading an introduction to any old novel.  I feel like after simply reading the introduction to this book I gained knowledge that I would have never otherwise aquired.  There were a couple of passages that really stood out to me.  The first was when Charles Wheelan talked about how we as a society let our emotion cloud our judgement in reguards to properly reacting to a curcumstance or risk.  We operate out of what we "feel" sounds right when really our initial reaction is rarely logical and beneficial in the long-run.  Another passage that struck my interest was when he said that this book isnt "Economics for dummies, it is economics for smart people who never studied economics."  This I found was a great way of putting it because the actual "dummies" are the one's content in knowing nothing about economics at all.

Introduction-question 7

From reading this introduction to Naked Economics and from class discussion it has become to clear to me (and i'm sure everyone else) that economics is not something to be ignorant towards. In both a personal and national sense, economics is ever present in our lives. Something that struck me from the intro was like Taylor said, the economically irresponsible decisions made by political figures. It seems as though not many people truly think through the monetary benefits or consequences when making important decisions. Not only those "big decisions" but everyday life choices too. Little things like, how am I going to commute to school can have economic advantages or disadvantages. The introduction and class thus far have definitely changed my thinking. I'm hoping that by the end of the semester I will be able to make smart and economically responsible decisions for myself.

Introduction

The introduction to Naked Economics revolves around the ideas that economics is  relevant to everyone. The author, Charles Wheelan uses this space to show that his book is written for smart beginners. One passage that particularly stood out to me was, "Economics is like gravity: Ignore it and you will be in for some rude surprises" (xxii). This sentence stuck with me because it was like a bolt of lightening. It puts things into perspective. Gravity, it is safe to assume, that everyone is aware of it's meaning and importance. Not so much with economics. But by tying the importance of economics along with such a well known idea, puts this course in perspective.

Introduction

6. 

In the introduction there was plenty of talk about governments, such as the French, that don't always think about the long term impact that a decision can have. Thinking that if you decrease the hours someone works in a week would create more jobs makes sense for a little while, but if you give it a moments thought it wouldn't work. It is scary knowing that people who run a country can't make the right decision. I'm not saying it is easy, but something like what the French did should probably not happen. Another concerning thing in the introduction was that experts predicted that there wasn't a economic collapse coming and that the housing market was fine. As we know there was a collapse. Even experts can't predict everything that could happen. This is something that is disturbing because nobody will ever know for sure what will happen. We always will be taking a chance no matter how certain we are. 

Introduction

6. What really struck me about this introduction was beyond just its ability to capture my attention, but its legitimate reasonings that everyone on this planet could use a little more knowledge on the subject of economics. One passage that particularly stuck out to me was when it mentioned the various political blunders those made when they ignored what should be simple economics* or at least logical sense. Like the French Socialist program that did absolutely nothing to help the job market or economy, in which they assumed that there were only a fixed number of jobs available in the economy. Even I, currently mystified and not well versed in the laws of economics, could see that that just really does not make any sense. Why are politicians and leaders making these uneducated decisions that affect millions of lives? Or as in the case of the 2008 election and Barack Obama making economically-driven campaign promises that may or may not have been substantiated by facts? Why don't more people make sure they have basic economics training if they expect to run an economy or even become a part of what makes it work? How is this unknowingly affecting our lives while the government makes calls that are not wholly sound?


*Disclaimer: I do not think that economics is simple, the author states these things like they are very basic human knowledge sometimes.

Response to Introduction

Charles Wheelan broadened my perspective on several view points in everyday life - Politically, Socially, and Environmentally. His views on the reasons behind a politician's economical beliefs are logical and well thought. The chain of logic he uses is easy to follow and understand. I personally wouldn't have thought about the subsequent consequences to follow from driving. "But we don't have to pay for some of the other significant costs of our driving: the emissions we leave behind, the congestion we cause, the wear and tear on public roads, the danger we pose to drivers in smaller cars". While I agree with his overall point, we do pay for each of the aforementioned in one way or another. Emissions we leave behind - we breathe them in and allow the toxins to enter our systems and paving the way for additional health costs. Congestion we cause - we sit in traffic jams and pay for the fuel we use in stalling idly. The wear and tear on public roads - by paying taxes to fund them and once again, by sitting in traffic and using gas. The danger we pose to drivers in smaller cars - firstly, we should all be good drivers before we get on the road and recognize potential dangers before they get out of hand (or else suffer from heightened insurance costs), and secondly, if we as drivers in a larger car happen to kill or injure the person in the smaller car, we live and pay with that guilt. We pay one way or the other. Now to completely go against my point - wouldn't we just benefit from not driving? Yes and no. Yes there would be less pollution, no traffic, less wear and tear on public roads, and less danger from emissions. Does that go to say that we don't need airplanes or buses or trains to get from one place to another? Yes, the argument can still be made. On the flip side though, do we really want to go back to the times when food perished before it reached its location? Or taking months to travel by foot? Or each family farming and tending crops rather than excelling in business? The questions run on. Cars are advancing with each passing year - causing old problems to solve and new to rise.

Introduction

This Introduction gives the basics and background of Economics. I agree with Kathryn that some of this knowledge doesn't apply to us right now, but in a couple years we will need to know all of this information. With going to college soon we also need to know about it because we will be on our own and wont be under our parents roofs anymore. One thing that really stuck out to me was the last paragraph on the introduction saying that Economics is important for everyone to know and understand. Anyone that is living in the united states or anywhere should know the basics. If everyone knows the basics then in the long run we will all be better off.

In the introduction Charles Wheelan makes a very good case for the importance of learning about and coming to understand economics. I may not have been aware of it before, but I am beginning to understand just how much economics affects individuals and society as a whole. Wheelan's analogy that "economics is like gravity: ignore it and you will be in for some rude surprises" was particularly striking and memorable. I've come to realize that there is a lot people more educated than me don't know about economics and that this lack of economic knowledge creates problems. I learned last semester in Ridenour's government class about being a well informed citizen. I believe that if the average citizen and politician had a better understanding if economics we might figure out how to reduce poverty and improve the nation's economy. Wheelan's introduction has convinced me that economics can be accessible and interesting to non-economists and I am excited to improve my knowledge and understanding.

6-7ish

Money is annoying! I say that only meaning that it causes such huge problems in the world! But what would we do without it and I guess that's where economics comes in. I have to say though, I was a little relieved when he said that there wouldn't be any graphs or math in this book; I'm excited to learn about this subject through stories and scenarios that have taken place in recient history. The way he started out with a story made reading the introduction interesting!
It amazes me though how much economics affects everything in society! From insurance to mortgages to ethnic differences, I never knew it was that broad of a subject.
Insurance is a topic I'm interested in learning more about, learning how it works and how they "twist" the rules to make ends meet. The Hospital situation in the intro was interesting to see how not thinking of "everyone" and only thinking of "someone" could so drastically affect so many different kinds of people.

I agree with Kathryn. I like how Charles Wheelan uses the introduction as a way to tell people, especially young adults, why they should care about economics. The examples he used grab your attention and make you want to learn more, like the maternity leave example. I found it interesting because it sheds light on why businesses have certain policies and it's important to not assume the worst without thinking about something rationally.

Introduction

2. Since this is just the introduction, it just began to bring up problems that we/ I will face in the future and in the real world. As of right now things like discrimination against young women in the work force because of maternity leave and extended time at hospitals after childbirth costing more money for prople with insurance aren't things that effect my life, or things that I think about on daily basis or really at all. Even though these ideas don't seem to directly effect me at all, the fact of the matter is that someday they will. Understanding why these things are important to know about is what the introduction of the book stresses in layman's terms.

Questions for response

2. Do the issues affect your life? Directly or indirectly? On a daily basis, or more generally? Now or in the future? 

3. What are the implications for the future? Are there long- or short-term consequences to the issues raised in the book? Are they positive or negative, affirming or frightening? 

4. What solutions does the author propose to any problems mentioned? Who would implement those solutions? How probable is success? 

5. How controversial are the issues raised in the book? Who is aligned on which sides of the issues? Where do you fall in that alignment? 

6. Talk about specific passages that struck you as significant—or interesting, profound, amusing, illuminating, disturbing, sad. What was memorable? 

7. What have you learned after reading this chapter? Has it broadened your perspective about a difficult issue—personal or societal? Has it introduced you to a new idea or way of thinking?