Thursday, August 26, 2010

9 Principles of Economics

At the Mises Blog, Art Carden lays out the 9 foundations of economics:

1. People Act.

2. Every Action Has a Cost.

3. People Respond to Incentives.

4. People make decisions at the margin.

5. Trade makes people better off.

6. People are Rational.

7. Using markets is costly, but using government can be costlier still.

8. Profits tell businesses that they are helping others, while losses tell businesses that they are wasting resources.

9. We shouldn’t ignore the long-term and unintended consequences of policies and actions.

Read Mr. Carden's explanations here.

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