Welcome to AP Macroeconomics! I am looking forward to getting to know you this next year! You are an economist now so it
is time to start thinking like one. Economics is the study of how we, as humans, choose to allocate our limited resources in order
to deal with our unlimited wants. So without further delay, let’s start making decisions.
Choices, Choices, Choices
Your summer assignment starts with a choice, or an opportunity cost if you will. “Opportunity cost” is the next best
alternative that is given up to get something else. When you select one the following options, you will pay an
opportunity cost. Whether you realize it or not, you will be weighing the cost and benefits of each option. In
economics, and in life, if you only think in the short-term you will find yourself behind in the long-term.
Choice A: Read the book and dedicate the time and effort necessary to do the assignment well.
Choice B: Skim the book and do the minimum to complete the assignment in the hope that I will not grade it carefully.
Choice C: Choose not read the book & not complete assignment assuming that maybe I am bluffing about giving you
a 0.
Let me help break this down for you so that you understand the possible outcomes so that you can make a rational
choice to do the assignment or not.
1. You will choose whether or not to do this assignment.
2. Your choice to read and write means you will give up the ability to do something else. I know you are thinking,
“But I can multitask…” but think about how that usually works out for you.
3. You will likely do this assignment because your incentive is a very large project grade and you know something
out of 100 is better than 0 out of 100. So using that logic, 95% of you will do this assignment. Though it may be
done begrudgingly and/or poorly, you will still do it because of the incentives.
4. Now for the 5% of you that will not do the assignment, you don’t get the incentive and now you have to face
negative consequences in the future. A zero out on the first grade of first nine weeks; parents yelling, me thinking
that you are a slacker, etc. The thing is, unlike an economist, you actually know what happens in the future when
you make this choice so the question is, “Why would you choose that option, already knowing the future
consequence?”
Now that you know the incentives and the consequences of your decisions, you have a choice to make. It is my hope
that you will select Choice A. If so, then continue reading the assignment and its particulars on the following pages. If
you go with Choice C, then good luck. You will have your work cut out for you in the fall.
NAKED ECONOMICS: UNDRESSING THE DISMAL SCIENCE
(Fully revised and updated edition)
by Charles Wheelan
ISBN: 978-0-393-33764-8
Directions:
1. Read Chapters 1-6 in Naked Economics: Undressing the Dismal Science (Fully revised and updated edition)
2. For your summer reading you will be responding to each chapter, in three steps
a. For each chapter, I have given you an overview of what it is addressing-Your mission is to take it one step
further, explain that chapter to me. Break it down even more. This is not quoting the book-you are walking
me through what it is addressing.
b. The chapter is full of examples. Come up with two unique examples from your own life/experience that
help illustrate what this chapter is focusing on. (That Charles Wheelan could use in his next edition)
c. Connect your examples to the summary. Why do your examples work? How do they connect to the
chapter? You are justifying your examples.
3. Format
a. Your responses to each chapter should be kept separate from the others. Avoid using direct quotes from
the text. You are interpreting the concepts in your own words
b. Each page must be single-spaced in 12-point font – using either Arial or Times New Roman Font.
c. 1” margins all the way around the paper.
d. Each page must contain your full name and course name.
e. You must place the chapter title at the top of the first page of each chapter analysis.
f. Limit each response to 1 page or less. Your objective is to be brief but also be descriptive!
4. Each response will be worth 15 points toward your 1st nine weeks grade and will be graded based upon the
following grading criteria:
A. Summary (5 points) - Did you accurately identify and elaborate on the significant points of the chapter?
B. Examples (5 points)- Did you identify 2 unique examples
C. Connection (5 points) – Did you connect each example to the chapter? Did you justify each example?
D. There will be an additional 10 points overall added if the assignment is turned in on time.
5. Submitting your assignment to turnitin.com
Step one: Setup account.
 Go to turnitin.com.
 Click: Create Account. Create a New Account: Click “Student”
 Enter the Class ID: 10013295
 Enter the Class Password: ilovemondays
This is the information you need to log in. If you do not have an email address, you can make one up, but you will need
to remember it! I DO NOT have lists of passwords. NOTE: If you already registered in the past with TURNITIN, you need
only to click on the tab that states, “enroll in a class” and then enter the Class ID and class password above.
Step Two: Once you login, you will be in your “portfolio”. The class should appear. The assignment will also be
present (Naked Economics Summer Reading).Click the SUBMIT button next to that assignment to turn in work.
Step Three: You now need to have your assignment in electronic form. You have two choices.
1. You may attach your document (like you would to an email). If attached as a document, you must
have a file ending on the name of your file (ex. .doc or .docx or .rtf) Attaching as a document is
preferred as you will keep all of your formatting.
2. Open the document and copy / paste the text into TURNITIN.
- Check your originality report. If it 15% or less, you are good to go. If it is greater than 15%, you should make
changes and resubmit before the due date. The originality report is not instantaneous so you should plan on
submitting early.
Chapter Summaries:
Chapter 1: The Power of Markets
 Businesses work for their own best interest which leads
to improvement and growth for most members of
society.
 All decisions are economic- you decide what is best for
you and what will make you happiest.
 Our economy is a market economy-which has producers
and consumers operating and making decisions on their
own free will- which allows our economy to be efficient.
There are advantages and disadvantages to this though.
Chapter 2: Incentives Matter
 Incentives determine work ethic, behavior, every
decision!
 While incentives are important, they can cause many
problems because of a lack of
coordination/communication.
Chapter 3: Government and the Economy
 The market system can create problems which is why the
government is needed to step in and help correct.
 One of their most valuable tools is taxes. These can be
used to help align an individual’s interests with those of
the entire group.
 They also protect property rights which safeguards
investments and creativity.
Chapter 4: Government and the Economy II
 Despite the need for the government and some of its
policies, it also controls more than it should.
 The government is able to assign resources in particular
ways which create inefficiencies through creating their
own businesses, regulation, taxes.
 The involvement of the government often leads to
inefficiencies and wasted resources
Chapter 5: Economics of Information
 What you don’t know CAN hurt you; because of this both
producers and consumers take steps to try to account for
the lack of knowledge.
Chapter 6: Productivity and Human Capital
 Human capital-which looks at your skills and abilities
rather than your assets or belongings- is what will
determine your pay. Do you possess unique skills, or are
you doing something that anyone can do?
 Human capital is linked to productivity and the more
productive we are, the richer we are.
 The enormous wealth earned by entrepreneurs provides
an incentive to take the risks necessary for leaps in
innovation, many of which have huge payoffs for society.
Economics is about incentives, and the prospect of
getting rich is a big incentive
Please feel free to contact me if you have any questions about the summer assignment or if you need any other
assistance. I will be checking my e-mail regularly over the summer; so do not hesitate in contacting me. Keep in mind
that it is my summer vacation too. I will respond as quickly as possible, but there will be a delay.
-Mrs. Walker
E-mail: walkerj@leonschools.net
Please sign up for Remind, a texting service, text @macro16 to 81010.