“The 10 Things In Economics That Everybody Should Know”


This: list: gets about 2.5 out of 10 correct. A better list:

1. People want far more at zero prices than they can possibly produce: goods and services have been, are, and almost surely always will be scarce.

2. People respond to incentives.

3. The cost of doing something is the value of the next best alternative foregone. (On the list.)

4 Sunk costs are sunk. (Or, sunk costs should be ignored in making decisions.)

5. Voluntary trade is mutually beneficial. (On the list.)

6. Market s are least-cost allocatiion mechanisms.

7. Future cash flows are worth less than nomimally equivalent current cash.

8. Inflation is, everywhere and always, caused by excessively high money growth.

Trending Today
Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

7

The Relative Value of $100 is Different State to State—This Map Shows What a Benjamin Is Worth Where You Are

No surprise here – the most Progressive/Marxist states in the Union are the ones that take the most money from

0

IRS To Hire ‘Diversity and Inclusion Specialist’ At $123,758 Salary

After repeated scandals, the IRS is looking to hire a new “Diversity and Inclusion Specialist” and is offering a generous

3

So, The Wage Gap IS True. Only, It’s Men Who Earn Less

The Left is still busily trumpeting the fallacy-filled idea of there being a wage gap in favor of men. In