Steven E. Landsburg
Economics is not just about money, but a powerful lens for understanding human behavior. By examining incentives, you can uncover the hidden logic behind the seemingly irrational choices people make every day.
People always respond to incentives, meaning that well-intentioned policies often create unintended consequences when they alter the risks and rewards of an action.
The concept of opportunity cost dictates that the true price of any choice is the value of the next best alternative you must give up.
Prices act as essential signals that coordinate market activity and efficiently allocate scarce resources without the need for central planning.