“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

10

For All Teachers’ Whining, Almost Half of Chicago Area Teachers Make $100K a Year

As the Obama economy tumbles farther and farther down into depression, as states begin to face the reality of a

4

Video: Daily Show Humiliates Unions that Hire Non-Union Picketers

The United Food and Commercial Workers Union (UFCW) is attacking Walmart (and has been for years) and how are they

159

Shuttering New Jersey Abortion Mills: Another Reason Why Christie is a Hero

Aside from New Jersey Governor Chris Christie taking the fight to the state’s greedy, education-killing teachers union the Gov has