“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.
1) Our own government chides those of us who pay taxes for being greedy because we don’t want to give the politicians even more of our money to do things...Read More
Associate Professor of Economics, North Carolina State Univ.
Remember this from Tuesday? President Barack Obama on Tuesday called on congressional leaders – especially Speaker John Boehner (R-Ohio) –
When I read that GOP leaders in upstate New York had tapped a state legislator who backed the Democrats’ spendthrift
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