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Part 1: Twelve Key Elements of Economics

Element 1.1: Incentives Matter

Element 1.2: There Is No Such Thing as a Free Lunch

Element 1.3: Decisions Are Made at the Margins

Element 1.4: Benefits of Trade

Element 1.5: Transaction Costs Matter

Element 1.6: Prices Create Balance

Element 1.7: Profits Are a Guide to Productivity

Element 1.8: Incomes Come From Usefulness

Element 1.9: Value Creates Income and Wealth

Element 1.10: There Are Multiple Sources of Progress

Element 1.11: The Usefulness of the “Invisible Hand”

Element 1.12: Unintended Consequences Create Problems

Part 2: Seven Major Sources of Economic Progress

Element 2.1: The Legal System

Element 2.2: Competitive Markets

Element 2.3: Sensible and Limited Regulation

Element 2.4: Efficient Capital Markets

Element 2.5: Monetary Stability

Element 2.6: Prudent Fiscal Policy

Element 2.7: Free Trade

Part 2: Final Thoughts

Element 3.1: Protect Rights and Produce Limited Goods and Services

Element 3.3: Mitigate Market Failures

Element 3.4: Understand Political Pressures

Element 3.5: Adopt Rules to Limit the Influence of Special Interests

Element 3.6: Avoid Excessive Spending and Deficits

Element 3.7: Avoid Subsidies Not Based on Economic Logic

Element 3.8: Watch out for Inefficiencies Even From Useful Subsidies

Element 3.9: Central Planning Has Never Worked

Element 3.10: Competition and External Anchors Are Key

Element 4.2: Increase Your Value to Others

Element 4.3: Budget Your Spending and Saving

Element 4.5: Two Ways to Get More out of Your Money

Element 4.7: The Power of Compound Interest

Element 4.8: Diversify Your Assets

Element 4.9: Realize No One Can Consistently “Beat the Market”

Element 4.10: Match the Length of Your Investments to the Timing of Your Needs

Element 4.11: Reduce Your Risks

Element 4.12: Use Insurance to Protect Yourself