“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.

Also see...

Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

6

Apparently, Being Dem Means Not Having to Pay Rent

Long time Democratic Chicago Pol Monique Davis hasn’t paid the rent for her offices since 2002. Apparently it doesn’t matter

1

Dangers of the Ballot Initiative

At first blush, the idea of having ballot initiatives on election day seems like such a great, democratic idea. Unfortunately,

7

Net Neutrality Update

If you are as worried as I am about the left’s effort to force ever larger amounts of big government