Ten Key Principles of Economics

1. Everything has a cost. There is no free lunch. There is always a trade-off.
2. Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.
3. One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).
4. Incentives work. People respond to incentives.
5. Open for trade. Trade can make all parties better off.
6. Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.
7. Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)
8. Concentrate on productivity. A country’s standard of living depends on how productive its economy is.
9. Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.!!
10. Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.



Showing posts with label Stock Market. Show all posts
Showing posts with label Stock Market. Show all posts

Wednesday, July 14, 2010

Tech Behemoths


Here is an interesting comparison of the big three tech giants Microsoft, Google, and Apple. There are interactive graphics that allow exploration of the different levels of competition they wage.
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Friday, June 25, 2010

The Origins Of The American Stock Market


The NYSE is a technical wonder now days moving billions of dollars daily between capital interests. This essay points out the humble beginnings of the stock exchange in America and how it evolved.
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