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STUDENT’S GUIDE
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Prepared by S. Clayton Palmer and Adjunct Instructor Department of Economics Weber State University & Westminster College of Salt Lake J. Lon Carlson Associate Professor Department of Economics Illinois State University

PREFACE
Introduction Welcome to the Student’s Guide to Freakonomics! The purpose of this guide is to help you better understand the analyses presentedin Freakonomics by providing a sort of “bridge” between the material covered in a traditional course in economic principles and topics addressed in what we consider to be one of the most fascinating books we’ve encountered in economics literature.

Many students view economics as a very difficult, if not impossible, course to master.This perception is, however, most likely based on observationsof the experiences of other students who did not apply the proper approach to learning economics. In many courses, simple memorization is enough. In economics, we would argue, this is not the case.While you need to understand the meaning of basic terms and concepts, you also need to be able to apply economic concepts in specific situations. In other words, you need to develop the ability to thinklike an economist.The authors of Freakonomics certainly show the reader how to do just that.The material presented here is intended to make the job a little easier. Organization of the Student’s Guide We organized the material in this guide to help you identify the key points in each chapter and check to ensure that you have a firm grasp of the key concepts presented in the book.The first sectionof each chapter in this guide consists of an overview that highlights the major topics and points presented in the book.The overview is designed to alert you to the major topics and is not intended to serve, in any way, as a substitute for the material in the text.

The second section of each chapter highlights key economic concepts that are addressed in the corresponding book chapter. Inaddition, we provide graphical illustrations at various points along the way to help you better understand how to use basic economic models to illustrate certain relationships discussed in the book.The purpose of this discussion is to alert you to the major factors that affect the relationship being illustrated. In order to be able to use graphs to analyze the effects of changes in key economicvariables, you must have a clear understanding of how the determinants of the relationship being illustrated in a graph are related. The third section of each chapter consists of a list of what we have termed “core competencies.” How well you are able to respond to each of the questions listed in this section will be a strong indicator of the extent to which you understand the material presented in thebook. Using the Student Guide

When using the student guide, remember that the overview and discussions of key graphs and terms are not substitutes for reading Freakonomics. Instead they are designed to “flag” key topics and alert you to specific items you may have missed.When completing the “core competency” questions, we strongly recommend that you avoid using your book or notes to answer thequestions on your initial run through. Instead, use the questions as a way to flag topics you have not yet mastered.When you cannot answer a specific question, or you answer it incorrectly, you should take that as a signal to go back and devote more study to the topic in question.

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Overview of Freakonomics: Themes and Fundamental Ideas
Positive vs. Normative Analysis

Although, as theauthors note, there is no single unifying theme the book is built around, we have identified a number of concepts that recur throughout the book. Many of the tales in Freakonomics are intended to challenge the prior beliefs (i.e., the conventional wisdom) of the reader.The conclusions derived from various investigations described in each chapter will often surprise you.They may even irritate your...