Concerning the novel Naked Economics by Charles Wheelan [[Need more info on the questions for Honors Econ]]?

Question

How do financial markets differ from Las Vegas?

What does economics explain about the politics of special interest groups?

What is GDP? What is the difference between nominal GDP and real GDP?

What are some of the causes of recessions?

What is fiscal policy?

What is Okun’s Law?

What is the current account surplus and current account deficit?

Explain why the Federal Reserve is such a powerful institution.

Explain what are the functions of money.

What gives the dollar its value?

What are some of the harmful effects of inflation?

What is deflation? Why is it not a positive phenomenon?

Why do we trade with others?

How can we offset some of the negative results of globalization?

Explain how globalization positively impacts poor developing nations.

What is the primary economic reason why sweatshops pay low wages?

Explain what are some of the factors that contribute to the wealth and poverty of different nations.

Explain why property rights are an important factor in economic development.

What is brain drain?

Explain why sound and effective government policies are often associated with successful foreign aid.

Answer 1

Did you read the book? You would know the answers to these questions if you did. I found the book very interesting, and it feels like the book goes fast because so many topics are covered. It stinks that you have to answer questions about the book, but you should really read it because it has everything interesting about economics without all the boring charts and math. If you want to have any chance at enjoying econ, start with this book.

It has a neat explanation of what gives the dollar its value, it explains that the dollar has value because other people will accept it for payment. He talks about how in India, rupees that are torn aren't accepted by stores even though the government says that a torn rupee is just as good as a regular one. A torn rupee is worthless because nobody will accept it as payment.

It also gives a great explanation of deflation and why it is so bad. He talks about how if the value of your money is going up, you are going to wait to purchase something that will lose value in time. That slows the flow of money and is far worse than inflation. Advisers said that Japan should do everything short of throwing money out of airplanes over cities to avoid deflation.

It also give one of the best arguements supporting globalization and free trade I have ever heard of. He says that sweat shops are good in developing nations because they are the highest paying jobs there. People actually want to work there because it pays so well by their standards.

Anyway those are just a few examples, you should really read the book, because it is a heck of a lot better than a textbook.