What's the best way to master Economics and have a thorough understanding of it?

Answer 1

By trying to apply your understanding of economics to practical issue you face in life.
As you face obstacles you cannot handle, you find yourself researching on tools that are new towards tackling this new problem and economics would make more sense to you.

Answer 2

What the others have said is pretty accurate. If you want to have a good understanding of economics you have to start thinking about economics on an everyday basis. Ask yourself, how do people make decisions? Most people do not go around asking questions like "will I get additional marginal utility from the consumption of an additional donut?", but many econmists do think exactly this way! Now notice, people may not rationally think about the utility they get from consumption or the benefit they get from production of their labor, but people do act according to economic principles. For example Im a law student and I was just reading that the starting salary for a 1st year associate at a large law firm in NYC has gone up to $160,000 a year. Most people just gasp and go, WOW, I think like an economist and say, why would these firms do this? The answer in that case is the cost/benefit analysis between time value of money. Many young associates leave large law firms after 2-3 years because they cant stand working 70-80 hour work weeks. The firms do not understand that this is a problem, they think that throwing more money at people will solve the problem, it wont.

I got off tangent, but you get the idea. You have to start thinking in terms of supply, demand and utility about everyday decisions that people make. Even something as trivial as "do I park close to the school and pay for a meter or walk for 10 minutes from a free parking spot" is an economic decision because it deals with the time value of money and the utility of not having to walk v the cost to park in a particular spot.

Finally, if you want an indepth understanding of economics you have to really study the subject. I would not recommend reading Adam Smith, et al from the start because you will misunderstand a lot of what they say. Start with a basic text book in economics or take a course in economics from a local college. This will give you a foundation on which you can build up your understanding of the theory, it will also enable you to better understand the criticisms of people like Marx and Adam Smith.

Answer 3

While this may be unpopular with the academics of the group, I would advise reading books like Freakonomics by Steven Levitt and Stephen Dubner after gaining an understanding of the basic theory of economics. When I look back on my studies of economics, I am disappointed that it took me as long as it did to critically examine various economic scenarios. I believe unique analysis of specific examples will help you develop the critical thinking necessary to gain a real understanding of more advanced economic theory - which, by the way - you should not forgo. Just take the scenic road to arrive there so that once engrossed you'll have the ability to analyze critically rather than simply reading and regurgitating.

Answer 4

First read:
An Inquiry into the Nature and Causes of the Wealth of Nations (1776).

The Wealth of Nations was influential since it did so much to create the field of economics and develop it into an autonomous systematic discipline. In the Western world, it is arguably the most influential book on the subject ever published.

Do not become influenced by what others say but by your own
understanding of The Wealth of Nations.

Think about Economics, What is the Science of Economics?

good luck

Answer 5

I agree with reading Adam Smith, Wealth of Nations.
I would also add, Economicis in one lesson, by Henry Hazlitt