“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

1

Unions Display Hatred in Union Derangement Syndrome

FacebookTwitterEmail My Friend Maggie Thurber has a great piece chronicling the hate that unions in Ohio display for those voters

26

Obama’s Keeping A “Naughty And Nice” List

FacebookTwitterEmail Yet another “enemies” list for the most polarizing president ever (via The Lonely Conservative) “Joe Biden was in Costco

68

Wisc. and Ind. Democrats: Union Cash Driving Democrats to Run and Hide

FacebookTwitterEmail With Democrat state legislators in Wisconsin and now Indiana fleeing their states so that they don’t have to do

Share This

Share this post with your friends!