Essay on The Difference between Economics and Freakonomics

Firstly, summarizing the main ideas of the book, it is necessary to pay attention to the fact that economics is the science of how people achieve their goals in a highly competitive modern environment, when the same people are trying to achieve exactly the same purposes in their life. As it was previously mentioned a system of incentives and motivation is at the heart of the motivation of any human activity, and Freakonomics is a study of such systems of incentives, a study which includes many intriguing examples from real life. Moreover, Freakonomics is, in fact, behavioral economics, and this book is a concentrated course of a popular psychology of economic behavior.

To add, in order to achieve the result it is often necessary to have a strong will and be reasonable, for the purpose to jump out of ”˜short trousers’ of traditional thinking. In fact, the success of businesses, as well as the efficiency of public administration, is based on a person’s ability to soar over traditional approaches and to implement new extraordinary approaches to existing situations. In such a way, traditional economics responds the questions “What to do?” and “How to do?”, while Freakonomics is trying to answer the questions “Why is it important to do something in one or another way?” and “Why is it so in our life?” (Levitt and Dubner, 2005). It also can be noted that economics is not only strange concepts and supply and demand curves, but it is also people who form the demand and supply, and exactly Freakonomics is able to remind all categories of our population that people are more important for our society than all mathematical calculations and formula.