Question 6. What caught my eye in chapter 5 was the whole debacle between the insurance company, patients and doctors. How insurance company's are their to make as much money as they can off patients with chronic injuries, but the doctor not all but some are their to give you the right treatment. Battling the insurance company is an alternative option but most of the time it's rare to win a case. Why the need to; in my opinion scam innocent people that are hurt or close to death. Can there be an equal way that all citizens have a fair and proactive case of insurance?

-Ford Schroeder

Chapter 1, Ram Ragoo Q7

Chapter one the start of the novel. I really enjoyed the Berlin wall and the coke company start. Taking out two birds with one stone. Both becoming known in Berlin and  blindly to the public pushing in your brand into a new society. It is very smart and I thought that was very cool. Next was the way that economics can clean up a society. Money wise and not money wise as well. The span that economics has is unbelievable. This chapter really highlights the ups and the strengths of a free market. I also really like how when something is needed and people want it everybody does there part . The Starbucks and the mosquito nets and everybody doing there part to make something that is needed and it also helps them too.  So to tie all the examples that I thought were significant is that the free market has tons of advantages even if your not in a free market thinking like it like in Berlin thinking like it can get you along way.

Question 6. Chapter 1 pages 14 and 15 really caught my eye. I found it very interesting when they talked about whole sale and price change. The fisherman could care less about the people selling the fish and more about them catching the fish. Popularity and change in style is huge for a lot of people in the work force especially those who produce and catch food. The other thing that caught my eye was that of restaurants. To intrigue customers they will do whatever it takes like at Chester's they put in bulletproof glass to create revenue and insure saftey, but sometimes rolling the dice can make or break the franchise. Risk is either a huge reward or another failure waiting to happen and in an economic stand point you have to a competative drive to succeed or you will get eaten alive.

- Ford Schroeder

Catherine Dustrude • Chapter 1 • Question 5

Pages 6-8 focus on social progression and why we Americans obtain certain luxuries that other countries or people cannot have. The example that stuck out was the one about the rainforest, which, is a very controversial subject for many people. Like the author showed, the attitude one may have towards it, greatly depends on where you are. We protest, saying, "No way!" Where as families there in those parts plead, "This is how I feed my family". Before even realizing that there were two sides to the argument, I automatically fell in the range that says 'do not kill the rainforest'. Now however, I'm kind of in the middle. I still think it's harmful (as the rise of CO2 testifies to), but I'm also more understanding of why it's needed.
Is it needed though? I mean, can't the United States (world??) come alongside these people and help them feed their families? Can't Obama insist that each American gives $10 or $100 or $1000 (depending on his/her income) to those places so those families don't have to cut trees, or destroy environments? Has it been tried? Would it be that hard? Would it even work?

Griffin Snow ~ Chapter 1 ~ Question 6

The passage that struck me most profound was the idea of controlling prices in a competitive market. Charles Wheelan gave examples of a gas station in South Africa, where the well dressed attendant filled up, checked the oil, and washed the windshield of his car, and the other example was of "the good 'ol days" of airplane travel, where the seats were bigger and quality of the plane and service was much higher. In the both examples, when the government controlled the price of an item (such as gas or plane ticket pricing), there has to be some way for the consumer to distinguish between the people who are selling these items. The quality has to go up in order for people to want to buy from them versus their competitors.
This chapter also seemed to be an extended introduction, letting the reader know what is coming up in the following chapters of the book (like the concept of investment diversification in Chapter 7). It gives me something to look forward going from chapter to chapter.

Marisa white chapter 1 question 6

The part in the chapter that I found interesting was when Wheelan talks about how economics somewhat revolves around people's preferences. And how it's good that everyone's preferences are different and unique. He says how rich people have different preferences than poor people which I agree with but at the same time it's not necessarily their fault that their preferences at the time may be more need based while richer people's preferences will most likely be more by what they want (like the example of birthday cakes for pets) since they probably already have everything they need. And also going along with that I thought it was interesting when he talked about the south American villagers cutting down valuable wildlife habitat to provide for their families, but that will eventually make the county poorer in the future. 

Derik Graham, Chapter 1, question 6

One passage that I found very interesting was the section on the "superstar" phenomenon. I noticed that before this passage the author said that "profit opportunities attract firms like skarks to blood..." and so are we attracted to the most profitable fields of work. I attributed this to us acting in our rational self-interest, more money=more stuff, and that makes sense. Moreover on the superstar phenomenon, I have always recognized the fact that one must be the best in their field to recieve the most pay for their talents, but I never realized the barriers that this creates. If I am inffering correctly from the context of the passage, because the most talented worker gets paid the largest sum of money then as a result there is less profit to provide for more workers, and furthermore makes it all the more difficult for someone well qualified to get a job. This poses a question of whether or not this is fair, but then again as Wheelan stated, capitalism is the lesser of evils, and is more certainly not fair, and if I were to add to that I would say that capitalism is fair, but only to those better suited for competition.

Kate Brown, Chapter 1, Question #6.

One passage that struck me as significant was the passage that explained the fallacy of strict rationality. Though described through the use of a seemingly trivial example the author clearly illustrates a person's inability to always act in a way that is best for them in the long run. Despite the fact that it seems illogical this section explains that it is sometime best to take a way an option in order to point someone in the right direction. This section also brings up the connection between economics and psychology and how the best economies are able to interpret what people want and what is best for them long term.

Gracia Gilreath, Chapter 1, Question 2

The issue that most directly affects my life is price discrimination, which is is when a firm sells their products at different prices in different places. This is evident when my family and I are shopping for food or clothes. We tend to shop for groceries at Cub instead of Kowalski's or Lund's because we know that we can get the exact same product for a better price at Cub. We know this because of experimenting with buying groceries from all three places and in the end, we pay less for groceries at  Cub, even though we purchase the same items at all three grocers. Likewise, when shopping for clothes, I tend to stay away from the leading (more expensive) product stores and look for deals at cheaper product stores, such as, Marshals. This is because I have found that I can find the same exact sweater for a much better price at Marshals then at Gap. By paying less for my sweater I am able to save money, which can go towards something else that I may want in the future.

Erik Dahlman, Chapter 1, Question 4

In the chapter, the author mentions the problem of deforestation of developing countries. The possible answer proposed in the book is to pay the developing countries to not destroy the forests. This would be done by developed countries with more of the luxury good of the ability to care for the environment. I feel that the success for this plan is limited however since the people would then attempt to find other jobs if they cannot chop the trees and so there would be more demand for jobs and no noticeable increase in jobs leaving many unemployed and then they could possibly return to covertly destroying the rain forests.

Zach Newton, Chapter 1, Question 6

I found the opening passage of this chapter to be extremely interesting. I had no idea that the Coca-Cola company used bypassed the Berlin wall to give out Cokes; however the more interesting thing here is why they did it. It struck me as a very similar tactic to what drug dealers use when hooking someone on their product. Give it to them for free, and wait for them to come back for more, slowly driving up the price as their need (demand) increases. I found this especially intriguing since Coca-Cola actually had cocaine in it at some point in its early history as a soft drink. It would be very interesting to me to see a number of how much profit was made by giving out all of those free Cokes, with the cost of the free Cokes subtracted from the profit of course. Judging by the given statement that the Coca-Cola market in East Germany grew to that of West Germany, an "already strong market", it must have been a fairly successful campaign.

Maggie Chamberlain, Chapter 1, Question #7

This chapter demonstrated the idea that we all act to maximize our utility. This idea was very illuminating as I started to see the reality of the matter. We all try to act in ways that will benefit us the most, whether it be psychologically, socially, financially, etc. One especially eye-opening example was that of plane ticket prices. I had never thought that airline companies could price their tickets differently for potentially the two people sitting right next to each other. But, the point that was made by this example, as well as the one with the differently-priced arthritis medications for Al Gore's mother and dog, was that certain people are charged more if they are more willing or able to pay. Of course Al Gore's mother is going to want arthritis medication for herself before she gets any for the dog, so her medication is going to cost more because she is more willing to pay for it, whereas getting medication for her dog would just be a bonus. So, people are going to be charged more for what they are most willing to pay for, and if the price is lower for the dog's medication the owner might be tempted to say "why not?" to a bonus medication too. In conclusion, this chapter opened my eyes to the reality of just how self-interested people are and how we're all just trying to maximize our utility.

Griffin- Introduction- Question 2/6ish

Before the class began, the idea of keeping jobs inside the United States made sense. By keeping citizens working here, there would be less unemployment and I imagined healthier cities and a better country. However, the idea of using other countries for production and promoting international trade made me realize how little I actually knew, and got me interested in how much I was going to be able to learn. I feel that many of us have ideas about how the economy and government works, but we are going to be able to change our views and learn useful information.

Erik Dahlman, Introduction, Question 7

After reading this chapter I have a better understanding of how economics affect my daily life and how obscure economists are influencing the path of the country in major ways. With this I can now see the intentions behind various laws and the fallacy, if it exists, in those laws if there is one. Economics impact extends far beyond the realm of money and into every aspect of life when you would not expect it.

Jacob, Intro, Question #7

After reading the introduction my perspective on the use of economics has changed dramatically. Before reading this I thought that economics could only be applied to my finances and smart financial planning. The reading enlightened me to how though at the most shallow level my presumptions were correct but that in reality it goes much deeper, leading to gender and race discrimination from employers. Now that my perspective has been broadened I am excited to learn some econ and read what else this book has to offer!

Zach Newton, Introduction, Question 6

One passage that I found to be illuminating in the Introductory paragraph of Naked Economics was the couple of paragraphs about health care reform. This passage revealed to me that health care questions are not as easily answered as they may seem to be. The example offered in the book is the "periodic campaign to mandate that insurance companies cover the cost of two nights in the hospital for women who have delivered babies, rather than just one" (xxi). This question is an interesting case of making many child bearing women more comfortable by allowing an extended stay at the hospital, but it would also mean disallowing some lower income families from affording insurance at all. To me, this does not seem like the simple "good of the many outweighs the good of a few" type of question. Instead it seems to be a comfort of the many and necessity for the few question.

Hayoung, Introduction; Question #2

Reading the Introduction to Naked Economics by Charles Wheelan has shown to me that economics is more than just the math people use when dealing with money, as I use to believe. It was when Wheelan used the great example of the effects of having a new mandate for insurance companies to cover the cost of two nights in the hospital for women who have delivered babies that I understood the importance of having an economic mind. He goes on to explain that if insurance companies are forced to pay for an extra day, then they will have to raise premiums making health insurance unattainable to certain people. The repercussions of these type of superficially pleasing plans are too costly to not look into and educate myself on. The whole theme of the introduction was to explain why we as educated people should not take economics for granted and expand our knowledge on the topic, and it has done just that. It has shown how economics deals with social issues something I am very passionate about, but would have never associated with economics. It does affect my daily life just as the car scenario explains on how payment is not just monetary nor paid of just by the owner of the vehicle but also the people and environment it can pollute or destroy. Such strong concepts are important even if your not planning on becoming a economist in the future.

Catherine Dustrude. Introduction. Question 6.

I was most captivated by the paragraphs about behavioral economics, towards the end of the intro. Maybe this is because I like knowing the reasons behind peoples' actions, and I like health/medicine... But nevertheless. Writing that we humans tend to either overestimate or underestimate risks (xxiv); and bringing in the examples like obesity and flying, made me question if any of the risks I take daily are as irrational as others. Then, why do I make those decisions, or lifestyle choices? This is interesting, and I think (?) chapter 3 will go more into this topic. (Yay).
The immediate paragraph states that there is a possible explanation for this over/underestimation of daily risks, with a lot of models and charts, but it doesn't give insight into why so many people become 'stupid, incompetent and self-destructive' at the same time. I think it has something to do with material goods. The car example earlier- we want it, we'll find a way to obtain it. Take the new iPhone 6+, an $800 phone. Is the mindset that bigger is better, or whatever, really true?  Even more general, shopping and spending money has been proven to lift emotional states and moods... So does it drive us into a state of economic blindness? I think the two are closely related. Just like the check we had Mr. Hoffner write to us with any item we wanted... The key word there was WANTED. Behavioral Economics.

Elizabeth Chun, introduction, question 6

One of the more suprising points in the introduction was that "many of our brightest citizens are economically illiterate" (xviii). It is somewhat concerning that many politicians do not pay very much attention to economics and many political debates include false economic assumptions whether they are about American unemployment and international trade or the number of work hours in a week. I also thought the passage about the excess costs of cars that drivers do not have to pay was interesting too. It was a simple metaphor that clearly explained the issue that is that people will spend money that is not theirs.

Introduction, Derik Graham, question 6

A significant portion of text that stood out to me was the author's discussion of affermative action policy in the work-place. Never had I before looked at such a situation in the way he presented it. Not only did I not know that in a situation where two different racial cantidates were up for the same position with equal qualifications that the minority cantidate would be chosen, but also I would have never thought that a policy with such good intentions would leave the white cantidates
"feeling like they have been discriminated against." (xx) I find it peculiar that policies aimed with such good intentions can often fall short of their mark and troubling that we cannot or have not come up with better

Ram, Intro, Question 6.

Milton Friedman... The Nobel laurate in economics.  His passage stuck out to me. His presence being the spokesman for the free market was amazing. The extrapolation that Charles Wheelan made from him was what stuck out to me the most. The American lust for cars, and the actual price that it costs for people using them. What people know and are aware they are spending and what they do not know both financially wise and economically wise. The connection that he made to the Dad's Credit Card was very interesting. I am interested to find out if it is actually higher taxes on gas or higher taxes on cars? or what it is. This is a very mind boggling concept to me what you get and what you give up. What people think the cost is, and what it ACTUALLY is.

Elyse Melling, Introduction, Question 6

      I found the passage about the French government in 2000 to be particularly interesting. In order to create jobs for the unemployed, the French government lowered the standard workweek from 39 hours to 35 hours. This policy was based on the idea that there are a limited number of jobs within an economy, and that more jobs cannot be created. This policy is proven false when looking at the American economy which has created millions of jobs over the years without dividing work hours, as the French did. In 2008, the French government came up with a solution to the problem- allow companies to negotiate their own work hours and do away with the 35 hour rule. I find this passage interesting because, as we talked about in class, one of the main ideas of economics is to diagnose a problem and produce a solution. This passage was a prime example of this idea.

Maggie Chamberlain, Introduction, Question #3

I think one of the most interesting points made in this chapter was the point made about automobiles. The author stated that we only pay for part of the cost of driving. We don't pay for "emissions we leave behind, the congestion we cause, the wear and tear on public roads, the danger we pose to drivers in small cars" (xxi-xxii).These things that we don't pay for can have a great effect on the future. High output of fuel emissions can lead to serious effects on the environment, leading to future campaigns to attempt to reverse the detrimental effects our cars can have on the earth, leading to greater expenses later. Some of these effects can seem to be short term, like the awful potholes that make it seem as if we're "off-roading it" on city streets. Year after year, damages to roads are repaired, but in the long-run what's better for the economy, repairing the roads year after year to "sustain jobs" or creating a permanent solution to the pothole problem by creating an indestructible road? As we talked about in class, the second solution would actually be better economically because the people who used to spend their time monotonously repairing roads can now use their time and efforts doing something else for society that may be more needed. In conclusion, through reading this chapter I have realized that by being ignorant about economics, we are all in danger of missing the long-term detrimental effects that our habits can have on the economy.

Kate Brown, Introduction, Question #6

The passage that stuck out to me the most in the introduction was the description of the concept of "adult hot potato". It was surprising and somewhat frightening to hear that when dealing with loans the goal is to not be the person stuck with it when it falls through. It was also interesting to hear that the mortgage brokers were paid on commission. Being paid based on how many large mortgages were taken on no matter how risky seems extremely reckless and illogical.

Introduction-Question 7(Gracia Gilreath)
I have learned that while economists make decisions based on cost and benefit analysis, they are not perfect and do make mistakes, like the way that many well-known economists did not anticipate the financial crisis that took place in 2005. This was because psychology was not added into the formula in order to come to the conclusion that behavioral economics was involved. Since economists base their thinking on rationality, it is hard to comprehend a decision that is made irrationally, which is why behavioral economics is needed. It involves the way that our brains work and why we make the decisions we do even though they may be irrational. This is what sparks me interest because I'm intrigued by how the human brain can effect decisions, which result in the different outcomes of economic situations.

Question 6. The introduction was very insightful and brought a lot of new ideas that many Americans lack these days. The Intuitive way of Economics really caught my attention; how people are able to break down a problem and use their own instinct and creative thought. The whole idea of thinking out of the box and past the numbers will better our understanding of what's happening in the world around us. By doing this people will establish a sense of ingenuity that they may have lacked before. Studying Economics can further benefit humans views and in this case educate for further success.

-Ford Schroeder

Marisa White, introduction, question #2

I think it's interesting to know the economics as a whole can effect everyone to a certain extent at the majority of ages, but it is still just treated like an average class that most students are dying to get it over with. From what I know of already, economics seems to play an important role in people's daily lives now and will continue in the future. If one thing can be prominent in everyone's lives in so many different ways I think it should be important to learn about, especially if "many of our brightest citizens are economically illiterate."

Blog Instructions

For each chapter you read, you should answer question #1 below in a handwritten journal that you will submit at the end of the term. This journal should highlight significant ideas, passages, stories, or facts that display knowledge of having done all of the reading. This can be post-reading reflection, or kept while you read. Throughout the semester you are to answer any other question from #2-7 below on the class blog (please list which question you are answering in the title of the blog post or at the start of the post itself).These responses will be used to facilitate discussion in class, and should prove that you did the entire reading and are prepared for class. Your responses and interactions on the blog will be graded on a 2 (excellent), 1 (sufficient), and 0 (insufficient) scale. Nothing can be added late. You should have 15 entries (including Preface and Epilogue) - comments on the work of others is considered excellent! Repeating what has already been written is not, and will get you a zero.Title your blog post like this: Name, Chapter, Question being answered (e.g. David Hoffner, Chapter 1, Question #5).

Journal
1. What is the central idea discussed in the chapter? What issues or ideas does the author explore? (Display knowledge of the full chapter, not simply one aspect).

Blog

2. Do the issues affect your life? Directly or indirectly? On a daily basis, or more generally? Now or in the future? 
3. What are the implications for the future? Are there long- or short-term consequences to the issues raised in the 
   book? Are they positive or negative, affirming or frightening? 
4. What solutions does the author propose to any problems mentioned? Who would implement those solutions? 
   How probable is success? 
5. How controversial are the issues raised in the book? Who is aligned on which sides of the issues? Where do you 
   fall in that alignment? 
6. Talk about specific passages that struck you as significant—or interesting, profound, amusing, illuminating, 
   disturbing, sad. What was memorable? 
7. What have you learned after reading this chapter? Has it broadened your perspective about a difficult issue— 
   personal or societal? Has it introduced you to a new idea or way of thinking?