“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.
Associate Professor of Economics, North Carolina State Univ.
Yes, it’s time for another tale of millions of your tax dollars wasted by the NEA on “art” in America.
This is a step in the right direction at curbing spending. You have to start somewhere and pork-barrel spending is
We could learn something from them. The Swiss “debt brake”–at first glance–seems like a good idea.