“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

4

Waste: Feds Gave ACORN Half a Million for ‘Fire Prevention’

FacebookTwitterEmail Jonathan Strong of the Daily Caller has another sad tale of massive government waste involving the criminal group ACORN.

0

Greens Fret Over Obama Admin Keystone Report

FacebookTwitterEmail The State Department has released its much-anticipated report on the environmental impact of the Keystone Pipeline and, to the

18

National Healthcare Saves $$ By Letting Some Patients Suffer

FacebookTwitterEmail Governor Sarah Palin once complained of those “death panels” in the President’s healthcare policy, a scoff that infuriated Obamacare’s

Share This

Share this post with your friends!