Here’s a sample of what economic educators think everyone needs to know:

• You can’t always get what you want – opportunity cost.

To get what you want, you must be willing to give something up. Some opportunity costs are made almost unconsciously, such as deciding whether or not to fill up on the bread while waiting for the entrČe. Others require more thought, such as how much of your salary you can put towards retirement.

• Don’t sink with a “sunk cost.” You’ve heard of “cutting your losses.” This is about looking at the costs and benefits of a particular situation as it is now – a concept known as marginal analysis. If you buy a candy bar, take a bite, and decide that you don’t like it, should you toss the rest or finish it? The price of the candy bar is the sunk cost. It’s already gone and you shouldn’t include it in your analysis. Your remaining options, the present set of circumstances upon which to make an intelligent decision, equal the marginal analysis.

• Remain flexible – understand supply and demand. Every parent gets this. The hot new Christmas toy gets harder to find and higher in cost as December approaches. But, if the manufacturer suddenly floods the market with more of the toys, profiteers can’t sell them for exorbitant prices on the Internet because there are plenty in the stores. Fluctuations in supply and demand can change the choices and behaviors of individuals and groups.

• Know relative price to make a relative decision. The designer jeans you have cherished and worn to ribbons for a decade cost you $25 new. To replace them will set you back $75 today. Is this a sensible investment? The only way to decide is to consider how much the cost of everything has changed in 10 years. It helps to understand the function of money, price stability, and money supply. Of course, you can avoid the whole dilemma by comparison shopping and locating a cheaper pair of jeans.

• Grow with trade. Capitalism meets the barter system. Specialization means people can make something well at less cost. You can make 10 palm frond hats a day but you have only one head. So you trade the hats for goods that you want and need. Market interaction, competition, and entrepreneurship complicate the simple beauty of this transaction.

• Public policy affects your pocketbook – analyze the financial implications of your vote. Most people agree that their elected officials need to understand economics. It is also necessary for voters to understand. The economic policies you support are critical to setting the direction of the nation. A framework for analysis for decisions about the national economy is necessary. The same framework can be used for deciding among candidates. How will candidate A’s position on health care change the quality of the care available to your family, for example? How will a trade agreement result in lower produce prices at the grocery store, or better-paying jobs in your community?