Lesson 4: The Auction Process
Reading assignment: Murphy, Textbook, Chapter 2
You are expected to memorize the following 40 words.
The five legal pillars of economics
1. Sovereignty. “Ownership establishes responsibility.”
2. Authority. “Responsibility is personal.”
3. Law. “Theft is illegal.”
4. Sanctions. “Contracts are binding.”
5. Succession. “Owners transfer ownership.”
The file pillars of economic reasoning
1. Sovereignty. “Owners allocate assets.”
2. Authority. “Prices identify costs.”
3. Law. “Men prefer more.”
4. Sanctions. “Scarcity imposes costs.”
5. Succession. “Growth reduces scarcity.”