I Lipstick 
Emily Reese
Eco 202
Professor Livingston
9/17/2014
“I, Pencil” and “I, Lipstick”
Part 1:
Leonard E. Read’s essay, “I, Pencil” is a short essay that explains important economic lessons through the point of view of a pencil. This essay teaches two important economic lessons about trade-offs and specialization. These two economic ideas are seen throughout Read’s entire essay. The lesson of trade offs is seen in this quote: “Each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items”. All of the people, who contributed to making the pencil, traded what they know and their time for their needs and wants. Thus the trade-off is the workers knowledge and time for their needs and wants. Specialization is another lesson shown in this essay, by the division of labor. Not one person knows how to do everything there is to do when it comes to creating a pencil, which is why there is specialization in trade and division of labor. Each worker had a specialized job that contributed to making the pencil. All of these workers combined is what led to the final product of the pencil. These two lesson are also shown in my own version of “I, Pencil”; “I, Lipstick.”
Part 2:
I, Lipstick, am a cosmetic known to most women. I enhance and add color to lips. I am made up of waxes, oils, and pigments. I am mostly made up of Carnauba wax. This wax is a natural vegetable wax from the leaves of a palm tree known as Copernica Cerifera. This tree is grown in Brazil. The tree exudes a wax through its fan-shaped leaves. This process starts with someone who plants the tree, then there is someone that gets the wax from the leaves, followed by someone who packages, ships, and delivers it to the lipstick manufacturers. This raw material is then imported to my manufacturer. My other ingredient, Lanolin oil, is found on sheep. Most lanolin oil used by humans comes from domestic sheep breeds. In order to
Eco 202
Professor Livingston
9/17/2014
“I, Pencil” and “I, Lipstick”
Part 1:
Leonard E. Read’s essay, “I, Pencil” is a short essay that explains important economic lessons through the point of view of a pencil. This essay teaches two important economic lessons about trade-offs and specialization. These two economic ideas are seen throughout Read’s entire essay. The lesson of trade offs is seen in this quote: “Each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items”. All of the people, who contributed to making the pencil, traded what they know and their time for their needs and wants. Thus the trade-off is the workers knowledge and time for their needs and wants. Specialization is another lesson shown in this essay, by the division of labor. Not one person knows how to do everything there is to do when it comes to creating a pencil, which is why there is specialization in trade and division of labor. Each worker had a specialized job that contributed to making the pencil. All of these workers combined is what led to the final product of the pencil. These two lesson are also shown in my own version of “I, Pencil”; “I, Lipstick.”
Part 2:
I, Lipstick, am a cosmetic known to most women. I enhance and add color to lips. I am made up of waxes, oils, and pigments. I am mostly made up of Carnauba wax. This wax is a natural vegetable wax from the leaves of a palm tree known as Copernica Cerifera. This tree is grown in Brazil. The tree exudes a wax through its fan-shaped leaves. This process starts with someone who plants the tree, then there is someone that gets the wax from the leaves, followed by someone who packages, ships, and delivers it to the lipstick manufacturers. This raw material is then imported to my manufacturer. My other ingredient, Lanolin oil, is found on sheep. Most lanolin oil used by humans comes from domestic sheep breeds. In order to