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Naked economics discussion questions Essay

Summer Reading Assignment Cheryl Wigwam Afford High School Cheryl. [email protected] Org Read Naked Economics: Undressing the Dismal Science, by Charles Whelan (2010). Http://www. Amazon. Com/Naked-Economics-Undressing-Science-Revised/EDP/ 0393337642 Assignment: As you read Naked Economics, answer the discussion questions below. You are to number your answers and use complete sentences. Discussion Questions: Chapter 1: The Power of Markets 1 . What are the two basic assumptions that economists make about individuals and firms? 2.

What is the role and significance of prices in the market economy? Chapter 2: Incentives Matter 3. Why do incentives matter? 4. What do you think about the author’s ideas on black rhino conservation? 5. Explain what perverse incentives are and give examples from a high school student’s life. Chapter 3: Government and the Economy 6. In your own words, explain the meaning of an externalities. 7. Explain the role of government in a market economy. Chapter 4: Government and the Economy II 8. Give some specific examples of government involvement in a market economy 9. Explain the concept of the governments “grabbing hand. Chapter 5: Economics of Information 10. Explain the author’s long term solution to “gender discrimination. ” Do you agree with him? 1 1 . Discuss adverse

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selection, as it relates to this chapter Chapter 6: Productivity and Human Capital 12. The author discusses the symptom of being poor, and the illness of being poor. What does the author mean? Do you agree with him? Explain. 13. What is so important about Human Capital? Chapter 7: Financial Markets 14. What does the efficient market theory have to do with financial markets? Explain he positives and negatives of the theory. 5. What is the coin flipping experiment, as it relates to investment diversification? Explain. Chapter 8: The Power of Organized Interests 16. Explain why the government pays subsidies to mohair farmers. 17. What does economics tell us about politics? Chapter 9: Keeping Score 18. According to the author, how important or effective is fiscal policy? 19. Explain how a current account surplus/deficit can be good and bad. 20. Explain why a nation’s GAP is both a good and poor measure of its economic well-being and progress? Naked economics discussion questions By jaggedly 21 .

What is the primary role of the Federal Reserve? What is the significance of this role? 22. Explain the relationship between governments who owe money, government policies to fight inflation, and monetary policy? 23. What is a consequence of poor monetary policy? Do you agree with the author? Explain. Chapter 11: Trade and Globalization 24. What is the “good news about Asian sweatshops”? 25. What is the relationship between specialization and productivity? 26. What is your opinion about globalization after reading this chapter? Chapter 12: Developing Economies 27. Explain what can be done to help developing nations. 8. What do these nations need to do to help themselves? Submitting the Assignment: Your completed assignment must be submitted to Turbulent. Com by 7:45 am on the first day of school. You must also submit a printed copy of the completed assignment to me during your class period on the first day of school. Questions: Please email me at Cheryl. [email protected] Org if you have any questions or concerns about the assignment. Late submissions will not be accepted, so be sure to give yourself plenty of time to finish the assignment before the first day of school.

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