“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 on the Web
Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

58

Senate’s Repeal Healthcare Vote Failure Further Makes Lie to Term ‘Conservative Democrat’

Newly minted West Virginia Senator, Democrat Joe Manchin, ran for office denigrating Obama’s take over of our national healthcare system

6

Bob Beckel, You Are Wrong

For those who’re unaware of the big dust up stirred by Fl Rep Allen West, here’re the remarks he made

7

VIDEO: Calif. Union Goon Pushes Tea Partier While Yelling About ‘Fascists,’ Another Attacks Man in Georgia

Union animals escalating violence across the country… BigGovernment.com has the startling tale of a Teamster Jacket-wearing union goon attacking a