“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.
When liberals look at the poor, first and foremost, they see people who will vote for them in exchange for goodies. This gives liberals a perverse incentive to keep as...Read More
Associate Professor of Economics, North Carolina State Univ.
A new bill going through the House of Representatives would make it illegal for a union to donate its members
The Chicago Tribune has an interesting story that shows that Obama’s $787 billion stimulus really didn’t do much by way
During his faux “jobs” speech on Sept 8, President Obama went off script for a brief sojourn into history to