“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.
People don’t like to talk about America’s culture for the same reason that a man who just had a heart attack doesn’t want to discuss the double bacon cheeseburger he’s...Read More
Associate Professor of Economics, North Carolina State Univ.
It’s been a bad few weeks months years for Obama on the economy. Nothing seems to be working. And it
The strategy is simple: cripple business with taxes and regulations so that it is unable to employ people, which will