Category : ECONOMIC

broken window

BROKEN WINDOW

BROKEN WINDOW – Mistaking destruction as a net-benefit to society (while ignoring opportunity costs).  A parable: Joe the Plummer is relaxing at home when he hears a crashing sound. He rushes downstairs to find a baseball through his window. His…

0 Comments / 64 View / April 9, 2015

sunk costs

SUNK COSTS

SUNK COSTS – Including past costs in future decision making.  Your mom was right, don’t cry over spilt milk. It is amusing how some expressions in English make sense while others are illogical – yet people continue to repeat them…

0 Comments / 15 View / April 9, 2015