"Economic theory has an amazing ability to explain the world around us. It explains human behavior of all sorts, from the mundane to the deadly serious, from the trivial day-to-day of our lives to the most important policy issues. Yes, the discipline of economics has become more complex in theory, often shrouded in mathematical formulations. Still, at the heart of mainline economics is the catallactic tradition(also known as the exchange paradigm), which emphasizes rational choice, subjective preferences, decisions made at the margin, and the importance of institutions. The world is complex, and sometimes complex theories are necessary, but basic economics does more explaining than many think." Read more." Read more. "Basic, But Not Simple" Nicholas Snow From the Archives, March 21, 2011. Via the Foundation for Economic Education. Image by Arvind Balaraman / FreeDigitalPhotos.net.