Thinking Economically

In this book Levi covers most if not all the major economic concepts. The first half of the book deals with microeconomics (the application of economic ideas to the individual decision, the individual firm, and the individual market). The last halfdeals with macroeconomics and such key issues as inflation, unemployment, and economic growth. Each of the chapters introduces a few new ideas, the ideas are then fleshed out by one or more real-world examples.

Levi provides a valuable service to the reader. First, the book does a good job explaining the underlying rules that govern economic thinking. This helps the reader understand more about what economists are saying and why they say it. Second, the essential economic principles are presented so that the reader can use them in his or her own decisions.

The book works well on both of these levels. Levi convincingly portrays the universality and power of the economic way of thinking. No graphs or mathematical formulas are used in the explanations--a drawback, since the examples sometimes become a bit unwieldy. Still, THINKING ECONOMICALLY: HOW ECONOMIC PRINCIPLES CAN CONTRIBUTE TO CLEAR THINKING is a painless way to learn the basics of economics.