Neoclassical Economics Concept in The Undercover Economist

Abstract

               This article aims to study the concepts of neoclassical economics as presented in the book The Undercover Economist, written by Tim Harford and translated by Oranuch Anusaksethien. The study is conducted using a documentary research method.

               The findings reveal that the key ideas of neoclassical economics, particularly in the realm of microeconomics, as presented in The Undercover Economist, can be divided into two parts:

               The first part discusses the fundamental assumptions of neoclassical economics. These include the assumption that humans are rational beings capable of making choices that maximize their own satisfaction; the assumption that complex phenomena in the world can be simplified into rational principles to facilitate understanding; and the implicit assumption that the free market represents the real world.

               The second part presents the core concepts of neoclassical microeconomics, which include the concept of marginal analysis, the concept of market efficiency, and the concept of market failure.

               A critique arising from the study is that the situations Harford refers to as "the real world" are, in fact, merely one version of reality.