“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.

Also see...

Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

6

Greenpeace Admits Coal Power a Job Creator

FacebookTwitterEmail Recently the enviro-centric group Greenpeace issued an extensive report scolding the “dirty” energy choices made by tech giants like

2

How Obama Enabled Unscrupulous Banks to Foreclose on Innocent Homeowners

FacebookTwitterEmail The epidemic of home foreclosures has been made far worse than necessary due to the banks’ unwillingness to work

4

New York Times: IRS Scandal Ignored Because of Rush Limbaugh

FacebookTwitterEmail There has been much speculation in the media on why Obama’s current scandal of the IRS targeting conservative groups

Share This

Share this post with your friends!