The economic way of thinking

One does not have to spend much time around economists to recognize that there is an “economic way of thinking.” Admittedly, economists, like others, differ widely in their ideological views. A news commentator once remarked that “any half-dozen economists will normally come up with about six different policy prescriptions.” Yet, in spite of their philosophical differences, the approach of economists reflects common ground.
That common ground is economic theory, developed from basic principles of human behavior. Economic researchers are constantly involved in testing and seeking to verify their theories. When the evidence from the testing is consistent with a theory, eventually that theory will become widely accepted among economists. Economic theory, like a road map or a guidebook, establishes reference points indicating what to look for, and how economic issues are interrelated. To a large degree. the basic economic principles are merely common sense. When applied consistently, however, these commonsense concepts can provide powerful and sometimes surprising insights.