READ: Naked Economics: Undressing the Dismal Science, Charles Wheeland, W.W. Norton, 2003. Completely- cover to cover.
Directions:
Create a time management plan for your reading schedule to ensure you have ample time to read the book. Set due dates for each chapter and each part of the assignment. Review your schedule with a parent or guardian.
Expectations: Work must be typed, 12 point font, double-spaced. Label each section appropriately with each number. Please check your work for complete sentences and grammatical errors. The answer for each section should be about a half to full page.
Due Date: The first day of the semester. No points will be awarded for late work. Be prepared to participate in a class discussion on the
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Discuss adverse selection, as it relates to this chapter.
6. Chapter six: The author discusses the symptom of being poor, and the illness of being poor. What does the author mean? Do you agree with him? Explain. How does the poverty line right now compare to 100 years ago? Why is America like a real life version of “Revenge of the Nerds?” What’s so important about Human Capital?
7. Chapter seven: What does the efficient market theory have to do with Financial markets? Discuss the positives and negatives of the theory. Why do Wall-Street types not like it? Explain the coin flipping experiment, as it relates to investment diversification.
8. Chapter eight: Why have mohair farmers earned a subsidy from the federal government for decades? What can you derive that economics tells us about politics?
9. Chapter nine: Explain how the average American is three times as rich as they would have been in 1950. Explain the most effective “knock” on GDP. What does the author think about the effectiveness of fiscal policy? Explain how a current account surplus/deficit can be good and bad.
10. Chapter ten: What is the drastic consequence of poor monetary policy the author discusses at the start of the chapter? Do you agree with this argument? Explain. What is the relationship between governments who owe money, government polices to fight inflation, and monetary policy? Does this change your opinion of how monetary policy is used by the US Government?
11.
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.
Charles states as his number one point that economics is really unpredictable. He uses the Coca-Cola Company as a fine example for this. That company starts of turning out to be loss and failure but within 10 years since it started it turned out to be very profitable. Charles also states that markets are extreme powerhouses over individual’s daily lives. Markets are also self-correcting because they use prices to allocate their resources. Individuals all work for their own self-interest so they can be better off in the society. One very good example the author provides is the Soviet’s socialist economy and how it failed because the bureaucracy controlled the economy, or basically he’s saying that
Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.
Chapter 8: A question that has stuck with Wheelan for years, asked by one of his peers was, “If people know so much about public policy, then why is everything so messed up” (175)? The reason for that is because it leads to something far more significant: Even when economists reach consensus on policies that would be to our advantage, they frequently run into political opposition. And when it comes to interest groups in politics, it pays to be small because the tail can wag the dog. This can have a huge impact on the economy. They are usually the most successful because the consequence of requests they receive are spread over a large, disunified group of people. Wheelan states that small problems begin to distort the simplest jobs of a market
When I first looked into finding this book I didn’t think much of it as I just thought it was just another type of text book or some sort. I was thinking that this would be some kind of auto biography or something I would not be interested in. In fact after reading this book I was stunned by the different views and aspects of economics that was explain and I would had never thought about them in that sort of way. This book covers a lot about we discussed in class. This book explains different examples of economic concepts that may be used in our daily lives. They
-Mohair farmers have earned a subsidy from the federal government for decades because the mohair farmers can get large payments from the government without taxpayers ever really noticing because the farmers who get the subsidy care a lot about it, while the rest of us taxpayers (paying mere pennies extra in taxes) do not really care. And, “any politician with a preference for job security can calculate that a vote for the mohair subsidy will earn the strong support of the mohair farmers while costing nothing among other voters” (Wheelan 177).
In our team paper, we are going to evaluate, assess, and apply various economic situations from a Keynesian and Classical perspective. As the global markets increase and decrease over time careful modifications of the economy of the United States need to be made. After a comprehensive assessment of the current economic situation team C has agreed, that the Current State of Interest Rates, unemployment, exceptions, and consumer incomes and spending are the distinct factors that have an influence on economic forecasting and growth. The US is still recovering from the financial crisis there is still some skepticism, despite recent signs in
12. What advice about investing in the stock market did you find most interesting and/or useful?
For this assignment I picked “the role of the Federal Reserve” a mere recital of the economic policies of government all over the world is calculated to cause any serious student of economics to throw up his hands in despair (pg, 74). The Federal Reserve is now in the business of enforcing the United States government’s drug laws, even if that means making a mockery of both state governments’ right to set their drug policies and the Fed’s governing statutes. A Federal Reserve official who played a key role in the government 's response to the 2008 financial crisis says the government should do more to prevent a repeat of that crisis and should consider whether the nation 's biggest banks need to be broken up. Neel Kashkari says he believes the most major banks still continue to pose a "significant, ongoing" economic risk. The next ten years will see an explosion of government debt and an implosion of government’s ability to fulfill its promises. Any economic or investment model based on past performance under previous economic conditions will be worthless just as useless as the Federal Reserve’s models.
All assignments are due on the date due. Diet Analysis is due at the beginning of class on due date posted.
* Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
The first reading is talking about wealth inequality by Derek Thompson’s post. The point of the first issue is stop calling wealth inequality because wealth is not the culprit. I agree with this idea. Poverty and social dysfunction make people to the plague in their life. People think that establish institutions will make prosper and give empower to people. However, that is not make people get a richer. People who have astronomically wealth in the hands of the 1% are continuing to grow up than normal people.
Deniz, I share with you the idea that “the most powerful misappropriate economics mainly through their political, economic and ethical power, together with allied economists” and commanded by central banks shareholders. I also agree with Stephen Ternyik that “they will not take the whole cake home if economic science will be applied”. Accordingly, in my Conference paper I estimated the aggregate supply and demand of the United Stated and demonstrated that the monetary policy may be at the root of this misappropriation for it causes GDP to fall (less employment and lower workers´ income) and prices to raise (more capitalists´ rent).
Case, K. E., & Fair, R. C. (2007). Principles of Economics (8th ed.). Upper Saddle River, NJ: Prentice Hall.
References John Sloman, Economics William A. McEachern, Economics Richard G. Lipsey and K. Alec Chrystal, Positive Economics G. F. Stanlake and Susan Grant, Introductory Economics Michael Parkin, Economics David Begg, Stanley Fischer and Rudiger Dornbusch, Economics