If one of your New Year’s resolutions is to “think economically,” please remember this top ten list:
10. Whatever the question, always answer, “There’s no such thing as a free lunch.”
9. Defend a decision by declaring, “It was worth the opportunity cost.”
8. Whether you like or dislike government, point to, “The power of the market.”
7. Explain a love of low prices with, “It’s the law of demand.”
6. Explain high prices with, “It’s the law of supply.”
5. Preface a position with, “on the one hand…but on the other…”
4. Justify your Thai T-shirt, Japanese camera, and Sumatran coffee beans by repeating, “comparative advantage, comparative advantage…”
3. When asked, “How are we doing?” just cite the GDP, CPI, and S&P.
2. Know that the size of the pie has nothing to do with food.
1. And finally, the most dependable way to “think economically” is to remember that, no matter what the topic, “It’s about the economy…”