“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

0

Doctors are sick of Obamacare

FacebookTwitterEmail Well, Obama can surely not count on doctors to back him in his re-election bid. Huffington Post’s Harry Bradford: posted

0

On The Economy, Obama Doesn’t Know His “Stuff”

FacebookTwitterEmail Cross-posted from AlexaShrugged.com: The man with the plan!:  Real Clear Politics has this clip of Obama demonstrating his economic

26

Wisc. Democrat Tells Workers Pay Union Dues or Lose Your Job

FacebookTwitterEmail You can only serve one master and Democrats have chosen unions over the people. Proof of this is once

Share This

Share this post with your friends!