-
Essay / Economics Analysis by Robert Frank - 1001
Let us begin with the definition of economics, the branch of knowledge concerned with production, consumption and the transfer of wealth. Basically finding ways to create money using production and consumption. The selected article is from Robert Frank's book, "The Economic Naturalist: In Search of Explanations for Everyday Enigmas", the article explains how Robert Frank developed economic naturalism while teaching economics at the University of Cornell for a few years. The different principles were explained through daily economic puzzles. The author of our article had found links with Robert Frank, when he stated the meaning of the term naturalist. Mr. John Siegfried said: “McCloskey's reference was to someone. Once he or she can read and finish this book, with some idea as a result of what economics is about. Mr. Frank was very subjective, as an individual can see once he reads the book. The reason for this statement is because of how Mr. Frank was trying to prove to his students, in everyone's daily lives, that they use economics in one way or another. However, Mr. Frank's main goal in writing this book and helping his student is to help others understand the different principles of economics that are simply fundamental. The main idea I saw was the cost-benefit principle, which states that "an individual (or business or corporation) should take an action if, and only if, the incremental benefits from the action are at least as important as the additional benefits it provides. additional costs. » (7 meducation). Economic Naturalist with the example of those who accompany this terminology: “It is intended for people who…. take pleasure in unraveling the mysteries of everyday human behavior. (2 Francs). This is where Robert Frank declared that economics and human behavior go hand in hand” (2016 Me). Here is a summary of what I learned after reading Robert Frank's book. As I read, I asked myself three questions: How is this book relevant to your life? Is this applicable? What examples in the book made economics a subject that never occurred to me, but now makes sense thanks to this book. This concerns my daily life and a question that I have always asked myself, which concerns the light in the refrigerator. I never understood why there wasn't any in the freezer. However, reading the book it states that the relationship between refrigerator and freezer is a matter of cost and benefit. Frank says: “These are also what economics calls fixed costs, which in this context means they don't vary depending on how many times you open the door. » (Frank 16). Fixed cost is a cost that changes over a short period of time and the level of sales or production will change over time. Moreover, in other cases it is determined by the daily activity of the individual. This applies to me when I use to pay my phone bill and before all the companies offer the unlimited plan at one price; However, initially the price may change significantly depending on my phone usage, may exceed the data plan, and will be charged more when the bill arrives due to exceeding my balance limit. So that's when fixed costs played a huge role in life, outside of the refrigerator situation. (2016 Me). In this part, the emphasis was placed on the fixed rate formula.