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Naked Economics
I found the reading assignment to be very insightful. Not knowing much about economics before this class, I picked up the book “Naked Economics” hesitantly thinking I would be lost in the first couple of pages. As I began to read I found myself actually understanding what I believe to be the basics of modern economics. The world is a very big place where there are hundreds of markets producing and trying to sell goods and services. The first example of giving Coca-Cola out as the Berlin wall fell between East and West Germany was a way of generating a market for future consumers in that country. Knowing that the market was strong in West Germany some easy questions were answered for the Coca-cola company which were: what to produce, and for whom to produce it. With those questions answered it is easy to make a decision, but not be able to see the big picture might of made it confusing to most at first like the men handing out the free coke. For me it would be hard to give out free coke, but for the Coca-Cola Company they benefited greatly for doing so.
Wheelan goes on to make the statement that individuals act to make themselves as well off as possible. I found it amusing how he derived utility from getting an immunization and paying taxes. Both of which make him better off, but are both things that he dislikes. He is willing to do something he deems painful to make be better off in the future. Like school, some of us may not like it but it sure has it perks which I will hopefully come to see in my future paycheck.
Wheelan then addresses the price system and its ability to dictate the movements of goods and services, and how the Law of Supply and Demand of th ...