Economics : The Science Of Economics Essay

1794 Words Oct 21st, 2016 8 Pages
According to Freakonomics “the science of economics is primarily a set of tools, as opposed to a subject matter” (Levitt. Pg. 13). The study of economics involves many different aspects such as societal mores, economic incentives, information asymmetry, and conventional wisdom, just to name a few. As time continues on though the study of economics boils down to humans respond to incentives. How and why do humans respond to incentives the way they do? Are these incentives always for the best? Incentives are what drive people to make the decisions they make there are both good and bad incentives.
In the book Freakonomics, the authors claim to be finding freakonomics as a new field of economics. Chapter one of Freakonomics starts off with economic incentives and gives examples as to how people respond to various incentives. Often enough, these incentives are used to urge people to do more of a good thing, and less of a bad thing. Not always, though, do people respond to incentives in the way an economist would like. Such as the daycare example, after a fine had been introduced for tardy parents picking up their kids, the number of tardy parents almost tripled. The chapter goes on to talk about cheating, and how society as a whole handles various forms of cheating. Cheating is often handled by either a punishment of some kind, or shaming the cheater, depending on the form of cheating. People are often not perfect, and when a ‘right reason’ for cheating may come up, it may have…

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