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Article: How economics works.(Applied Economics: Thinking Beyond Stage One)(Book Review)
- Article from:
- National Review
- Article date:
- December 31, 2003
- Author:
CopyrightCOPYRIGHT 2003 National Review, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Applied Economics: Thinking Beyond Stage One, by Thomas Sowell (Basic, 246 pp., $30)
ONE time-tested principle of economic theory is diminishing marginal utility, and economics itself is no exception to this general rule. The initial returns to economic study are massive: Mastering a few key principles unlocks a deep understanding of a wide range of phenomena that otherwise lie under a heavy mist of obfuscation. But the modern preference of economists for highly mathematical expositions of obscure problems shows that the discipline that taught us to make all judgments at the margin often violates its own precepts.
Happily, one of the older standbys in ...