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This includes finding the optimal balance between price and output, as well as charging different customer segments at different rates. Chapter 2 - Incentives Matter People commit crimes because they can make outsized gains relative to the risk. The costs are spread over the remaining 98 percent of us. We are better off today than at any other point in the history of civilization because we are better at producing goods and services than we have ever been.

Naked economics keeping score
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Moderate inflation can eat away at our wealth if we do not manage our assets properly. We work much harder when we directly benefit from our work, often yielding significant social gains. Unexpected bouts of inflation are good for debtors and bad for lenders.

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Inefficient governments stifle efficient market operations. The government should not be the sole provider of a good or service unless there is a compelling reason to believe that the private sector will fail in that role. The price of a certain skill bears no inherent relation to its naked economics keeping score value, only its scarcity. As costs increase, demand falls. Private costs of driving an SUV do not reflect the social costs.

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Naked economics keeping score
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