“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.

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

4

Ohio’s Ben Konop Wants Kids to Starve so he can Give Gov’t Payoffs to Unions

Ruinous PLAs Coming Your Way Lucas County, Ohio! Magie Thurber is reporting that Lucas County, Ohio County Commissioner Ben Konop

6

Harrisburg Is Sinking

Welcome to Harrisburg. Harrisburg, Pennsylvania demonstrates the future we have to look forward to if we allow the looting spree

105

White House Pressures GOP To Fix Sequester Plan Obama Proposed

Of course, what Team Obama really wants is more “revenue”, ie, tax increases (The Hill) The White House on Sunday

comments

Share This

Share this post with your friends!