“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

0

Imperial President’s Newest Lawbreaking: Violating Trademark Laws

With his introduction of his new (and useless) MyRA investment program, we discover that President Obama is so dismissive of

76

Presidential Credibility? Pre-2005 “Broke” Obamas Lived on Credit Lines

Prior to his book sales, made possible by terrorist Bill Ayers writing the book for him, and prior to her

12

Obamanomics on Display in Venezuela

You don’t need a crystal ball to see our government-run future — just a ticket to Venezuela, where Obama prototype