Everyone Should Know About Economics And Prosperity

Common Sense Economics
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Background
In Common Sense Economics Gwartney & Stroup (2016) reinforce the idea that nations need people who are literate in economics to be prosperous over time. Rather than highlight new ways of thinking the book explores economic principles, and reinforce the foundations to spur new ways of thinking. Gwartney & Stroup (2016) highlighted the key elements of common sense economics and they are mostly tied concepts of free market economics. The book is divided into four parts beginning with the key elements in economics, the major sources of economic progress the role of government and practical personal finance. As more people get the basic understanding of economics this benefits them individually and collectively as they make decisions associated with the efficient use of resources. An informed people also solve problems better as they are concerned with getting the optimal solutions. In free markets there is clear separation of the private and public goods, this helps in the efficient allocation of resources.
Part I
While policy makers have good intention when formulating policies what should be c...