“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.
Associate Professor of Economics, North Carolina State Univ.
FacebookTwitterEmail Originally posted at David Horowitz’s NewsReal: The two latest examples of Democrat ineptitude, incompetence and total math fail come
FacebookTwitterEmail Late yesterday, the Washington Post editorial board determined that the “Opening bids on ‘fiscal cliff’ talks are too small“.
Just two weeks before QE2 ends, Russia becomes third major country to announce it will dump U.S. Treasury holdings
FacebookTwitterEmail Tyler Durden asks, “Are we and Bill Gross (and certainly not Morgan Stanley) the only ones to see a