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.
CHAPTER 1 - The Power of Markets: Who feeds Paris?
The first chapter begins with an interesting story about how an advertising strategy by Coca Cola Europe proves to be a losing proposition at the start of 1989 but ends in impressive
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There could be a wrong logic when faced with incomplete data and management shoulders the cost of finding, hiring and training another person. When this is approached as an information problem, there are several essential issues that need to be borne in mind. First, the company is not the only one at fault here. When pregnant women, as the author illustrates decides to have a child and take paid maternity leave but eventually quit their companies, they are "imposing a cost on other women." What the author means is that the company who has suffered this would now discriminate upon hiring of women, especially those who are already pregnant. But the author thinks there is a solution here, one that calls for a generous but refundable maternity package. They can keep the money if they return back to work, but they must return it when they decide to leave. The author maintains that this chapter is not about discrimination but about information which is the main issue in many discrimination-related problems. Further on in the chapter, it talks lengthily about health care and information about the many areas related to this such as those taken by insurance companies involving genetics.
CHAPTER 6 Productivity and Human Capital: Why is Bill Gates so much richer than you are? The author discusses lengthily about how one is an example of human capital in this chapter. He begins with the luxuries that are