Economic theory is always controversial. Policy proposals to manage, organise or regulate economic activity invariably advantage some people to the detriment of others. To be 'economically literate' is to be able to compare alternative policy prescriptions to make explicit the theoretical logic which justifies such differential advantage.

Understanding Economics is unique in analysing a comprehensive spectrum of economic theory, highlighting the ideological and political dimension which gives theoretical interpretations relevance and significance. The original style and format allows the reader to readily identify significant theoretical differences, allowing alternative understandings to be compared and contrasted.