Naked Economics Chapter Summary

5. Copy three important passages (minimum of 3 sentences each); and then respond to these passages. Why do you think they are important? How do they help the author create his purpose?

1.“Economics is, at root, the study of incentives: how people get what they want, or need, especially when other people want or need the same thing. Economists love incentives. They love to dream them up and enact them, study them and tinker with them. The typical economist believes the world has not yet invented a problem that he cannot fix if given a free hand to design the proper incentive scheme. His solution may not always be pretty—it may involve coercion or exorbitant penalties or the violation of civil liberties—but the original problem, rest assured, will be fixed. An incentive is a bullet, a lever, a key: an often tiny object with astonishing power to change a situation.” (Dubner, Levitt 16)

a.Since Freakonomics is all about exploring a unique side of economics, this passage is key to understanding what economics truly are and what the
If I had the opportunity to meet Steven D. Levitt and Stephen J. Dubner, I would first ask them where they got the idea to partner up and write a book answering mysterious life questions that have never before been asked. I would want to know details such as how long the total time was to write Freakonomics and what type of environment they brainstormed and wrote in? “What were the biggest challenges in composing this literary work and how did you guys work to overcome them?” I would ask. I’d conclude by asking them what they believe is the most important thing to take away from their lessons and if either of them had any words of wisdom for me to remember as I continue to learn and grow in life. I would ask them all of these questions and endless more if I had the