The Book Called Freakonomics

What do School teachers and Sumo wrestlers have in common?This is the first chapter of the book Freakonomics. School teachers and sumo wrestlers both cheat but in different ways .This deal with a typical example of parents arriving late for school pickups .when a fine was levied for late pickups it was seen that parent did not mind paying the fine and promptly the late pickups increased. This was an economic incentive substituted by a moral incentive .Economics deal with how people try to get what they want and incentivizing it will be the best way to address this .As the authors put it ‘’ an incentive is a bullet, a lever, a key: an often tiny object with astonishing power to change a situation.” an incentive is given to people to do a good thing and less of a bad thing. Incentive is economic social and moral .The “sin tax “that is levied to deter people from smoking cigarettes is a social incentive. So for every incentive created, there are cleverer instinct and incentives to evade it.The authors cite the example of how by a single stoke the internal revenue service changed a law bringing