Applying economic theories to social issues, as presented in Freakonomics, might face several obstacles. Firstly, the complexity and diversity of social issues may not be fully captured by economic theories, which are often based on simplified models and assumptions. Secondly, there might be ethical considerations that economic theories do not account for. For instance, while an economic analysis might suggest a certain policy is efficient, it might be considered unethical or unfair. Lastly, there might be resistance from stakeholders who are negatively affected by the application of these theories.

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Freakonomics presents several economic theories that can be applied to understand market dynamics. A small business can use these theories to analyze their market in unconventional ways. For instance, the book discusses the impact of incentives, which can be used to understand consumer behavior. It also talks about the power of information, which can help a business gain a competitive edge. The book's approach to causality can help businesses identify the real reasons behind market trends. Lastly, the book's exploration of seemingly unrelated variables affecting outcomes can encourage businesses to look beyond traditional factors when analyzing their market.

Freakonomics presents several surprising ideas. One of the most shocking is the correlation between the legalization of abortion in the United States and a decrease in crime rates. The authors argue that the Roe v. Wade case in 1973, which legalized abortion, led to fewer unwanted children who might have grown up in poverty and turned to crime. This impact became evident in the mid-1990s when these children would have been in their twenties. Other surprising ideas in the book include the economic organization of drug-dealing gangs and the cheating patterns of sumo wrestlers.

The economic theories presented in Freakonomics are not typically applied by organizations in the traditional sense. Rather, they are used to analyze and understand social phenomena. For example, the theory that legalized abortion led to a decrease in crime rates is not something an organization would apply, but rather a theory that helps us understand societal trends. However, organizations such as police departments or social services may use such insights to inform their strategies and policies.

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Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...

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