Puzzles and paradoxes in economics / by Mark Skousen and Kenna C. Taylor

Economics is full of puzzles and para doxes that often frustrate and challenge everyone, including economists. This engaging book focuses on three types of paradox. First, everyday observations that appear to belie common sense (such as why do some supermarket items sell for more per ounce in larger sizes?). Secondly, those paradoxes which have perplexed economists in the past but have since been fairly resolved (such as the diamond-water paradox). Finally, empirical or conceptual anomalies that remain unresolved and present a chal lenge to today's economists (such as the voting paradox).

Fifty puzzles and paradoxes are ana lysed in a clear framework. Examples include: the fairness of market wages, the alleged gold absurdity, Giffin goods and the Irish potato famine, the paradox of thrift, the supposed perversity of Wall Street, the leisure paradox, why the best Washington apples are shipped out of state (the Alchian-Allen theorem), the question of whether teachers are under paid, whether studying economics makes people immoral and whether war is good for the economy.

This original and unusual book will have a wide appeal, ranging from the lay person with an interest in everyday economic puzzles, to the student and teacher wishing to develop their under standing of some of the paradoxes that have existed and continue to exist in economics. It will serve as an ideal source for teachers who want to chal lenge their students with unusual eco nomic problems.