Economics

Useful Concepts/Ideas

1. Comparative Advantage

2. Demand and Supply

3. Incentive: Appeal to interests

4. Febezzlement: Munger invented the word febezzlement” for the practice of charging high fees during the good times 

5. Marginal Contribution 

6. Opportunity Cost 

7. Sunk Cost doesn't matter:
   The sunk cost fallacy reasoning states that further investments or commitments are justified because the resources already invested will be lost otherwise. Therefore, the sunk cost fallacy is a mistake in reasoning in which the sunk costs of an activity are considered when deciding whether to continue with the activity. This is also often known as “throwing good money after bad.”

8. Tragedy of Common

9. Invisible Hand

10. Invisible Foot