This post addresses the following Keystone Economic Principles
1. We all make choices.
2. There ain’t no such thing as a free lunch.
3. All choices have consequences.
People often overlook some of the social implications of economics. One of the best examples of this is how we think about prejudice. I find that students frequently don't see a connection. But prejudicial behavior has an economic cost.
This article in the January 17th issue of The Economist talks about the price we pay for prejudicial behavior. The research cited looked at questions of weight, gender and race. In all cases, prejudice was more prevalent than many of the participants admitted to, and in some cases there prejudice implied some significant costs, both personal and social. The lesson is that when we make choices based on prejudice, we give up something. And the choice can have long-term consequences for many people involved and many who are not involved in the immediate decision. (An externality?)
I look forward to your comments.