“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

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

17

Union Thug Whines That People Are Mistreating Union Thugs

This one is hilarious. Union chief James P. Hoffa of the Teamsters has an op ed in the Detroit News

0

Video: Dan Juneau On Impact of Oil Moratorium on Citizens of Louisiana

Here is a very interesting interview with Dan Juneau, President of the Louisiana Association of Business and Industry (LABI). LABI

22

Time Mag: Occupy Wall Street The Number One Story of 2011?

It’s that time of year again, time for newspapers and magazines to start floating their “top stories of the year”