Key Concepts Of The Smart People Essay

832 Words Nov 19th, 2014 4 Pages
Wheelan seeks to explain key concepts to the smart people. He weaves real life situations with the economic theory in the narrative. He seeks to introduce economics to those who are in a position of understanding what is articulated in layman terms. Various things ought to be considered when determining the overall wellbeing of the economy. Human beings have different motivators and set priorities. A clear understanding of all factors surrounding decision-making and all the possible results is of great essence. Information asymmetry can result to a number of problems. The success of any company relies on production levels. People are more inclined to achieving short-term needs than the long-term results. The level of education, skills, training and the health conditions of the citizens are key to the success of any economy. An individual will always have something to offer if they are equipped with appropriate skills. Education enhances the skill level of any individual hence improving the quality and quantity of production. The need for even distribution of resources is apparent. Government policies impact on the economy with their ability to have control on the level of economic activity. However, too much control can result to various adverse effects.

The author commences with a 1989 story where Coca-Cola decided to issue free soda to people living in the east of Berlin. The book focuses on four dynamic pillars. The first pillar is that incentives producing utility have…

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