Select two subject and explain how they t into economics-
what do the subject have in common? How does it impact how
you think about economics? What can you learn from it? and how
can you apply it?
The beginning of the movie really captured my attention.
Steven Levitt talks about an example of incentives in the real
estate market. He says that the real estate agent has an incentive
to sell a house now rather than later because of the commission
that is made from selling his clients house. The real estate agent
when selling his own house on the other hand will make more for
his/her own home because they will wait for the price of their
home to rise and then sell. The real estate agent could do the
same for the client but there is no big incentive to forward this
information. (Steven Levitt,Stephen Dubner , “Freakonomics”) Any
person with a sales job that is based o, commission will work
harder to get a sale rather than a sales job with a base salary
because of incentive and commission is how that salary will be
created. The state o,ered Toyota several incentives to locate the
