Can you name the five categories in which a Nobel Prize is given out each year? Everybody knows Peace. People have probably heard of Literature, Physics, and Chemistry. There is also one for Medicine. But in addition to these prizes, the Swedish central bank has established a sixth prize: the Nobel Memorial Prize in Economic Sciences.

Note that the Nobel for Economics is not technically a Nobel prize, but it is given out at the same ceremony and generally regarded the same as its peers. I guess you could say its separate but equal.

The elevation of economics to the level of the other Nobel categories might seem strange to some, but I would argue that economics is just as important to our understanding of the modern world as chemistry or physics. To grasp that, you need to first understand that economics refers to more than just the economy. Economics is the study of motivations and behavior, of how and why decisions are made. It is part math, part psychology, and part statistics.

In his book "The Undercover Economist", Tim Harford explores how economics shapes the world around us. And in doing so, he gives readers insights on making better, more informed decisions. Everyday questions like why does Starbucks charge so much, why do supermarkets have coupons, and what role government should play in the economy are tackled in a rigorous, yet easily understood fashion.

More importantly, the book is fun. Reading the book is like having Harford pull back a curtain on a hidden part of how our society functions. In addition to the book, Harford writes an online blog and, to my delight, an advice column, where you can see for yourself before diving into a whole book how insightful and fun Harford is to read. In his column, Harford brings economic theory to bear on such diverse subjects as choosing a wine on a date, parenting, traffic, and sports.

The greatest compliment I can give Harford is that I would never try to write a "Somebody Else's Business" based on one of his columns - his advice is always unimpeachable.