10 Reasons Why We Study Economics- Economics is one important subject that is taught in many schools; to both science, social science, commercial and art students in secondary schools. One begin to wonder, what about this subject that makes it compulsory for students? Why must we study economics? Well, in this post we have answers to such question. We will be looking at 10 reasons why we study economics. We would also be showing you tips on how to study economics and where to get the best economics education around the world.
Reasons Why We Study Economics
What Is Economics
Adam Smith , the father of economics defined economics as the “science of wealth”.
Another definition of economics is stated thus: “a social science that deals with the study of the production, distribution and consumption of goods and services”.
Yet another definition: “Economics is a social science that deals with the study of how individuals, organizations and the society at large allocate scarce resources in order to meet the ever-increasing needs and wants of man”.
Economics is categorized into two major branches: Microeconomics and Macroeconomics. Microeconomics deals with the study of the behavior of individuals factors such as household, business, market, etc. Macroeconomics deals with economic factors on a large scale e.g. inflation, economic growth, national development, unemployment, etc.
10 Reasons Why We Study Economics
#1 Economics is needed for policy making
Every now and then, government need to formulate policies for the well-being of the nation and the people. The knowledge of economic principles is important to formulate and activate these policies. Some of the policies are formulated in order to promote economic growth, curb inflation, reduce employment, etc.
#2 Economics is important for making sound business decision
Business men and women need the knowledge of economics to make intelligent business decisions. Understanding of the forces of demand and supply, opportunity cost, scarcity is critical to the success of a business.
#3 Helps to understand economic growth
Economics is needed to understand factors that enhances growth and the implication of economic growth on the society.
#4 Necessary for Personal financing and budgeting
Individuals need the knowledge of economics for financial planning and forecasting. Economics teaches you how to save , invest, scale your spending and handle your debts. The subject of economics helps you to learn how to use resources judiciously and wisely eliminating waste.
#5 Helps to understand market behavior
Economics helps us in understanding how market behaves e.g how prices are determined, scarcity, inflation, etc. We get to understand how demand and supply works, opportunity cost, equilibrium and scarcity are better explained in economics. As a business owner, understanding of the market will help you to take strategic decision to enhance the performance of your organization.
#6 Facilitates resource allocation
Economics facilitates resource allocation in the society. It helps the people understand how these resources are distributed and different factors affecting the distribution.
#7 Economics is important in international development
Economics helps us understand economic growth and development in the country. We can better understand what causes poverty and inequality and how such can be tackled.
#8 It expands your career opportunities
Knowledge of economics will increase your employability. Actually, during the study of economics, you get exposed to some skills that are relevant in the workplace. For instance a lot of career requires knowledge of economic principles, models and relationships in their operations.
#9 Economics helps you understand current world problems
With the knowledge of economics, people can be able to understand world problems, how these problems came about and how to tackle such problems.
#10 You will learn how to take advantage of economic tools
In the study of economics , you will learn about some economic tools for analysis. Some of these tools will help you when you need to make some decisions either for business or personal reasons. A good example of such tool is the conjoint analysis, a statistical tool used to measure the consumer demand for particular product features.
Topics To Be Learnt In The Study Of Economics
In the study of economics, these are some of the major topics you will be learning:
- Demand and supply
- Perfect and imperfect competition
- Price controls
- International trade
- Monetary policy,
- Interest rates
- Exchange rates
How To Study Economics
Having considered the reasons why we study economics, let us now consider how to study economics. To study economics, you should pay attention to the following:
Educational requirements: To be able to study economics in the university, you should have a high school diploma or its equivalent.
Good mathematical and analytical skills: You need to have strong mathematical and analytical skills to be able to study economics. This is because as you study, you would come across some mathematical calculations and you will also be needing to analyse and interpret some results.
Good communication skill
Good communication skill is also needed in the field of economics. As an economist or student of economics, there will be times that you will need to work in a team. At such times, you will need to communicate your ideas and opinions with others.
Good work ethic: To study economics, a lot of hard work and dedication is required. You can not afford to be lazy as an economics student.
Critical thinking and problem-solving skills: A great deal of critical thinking and problem-solving abilities is needed in the study of economics. You must be able to analyze data , interpret results, make inference and make intelligent decisions based on your findings.
You should develop genuine interest in the subject: For you to be successful in the study of economics, you must have genuine interest in the subject. This personal interest is what will drive you on in your study even in the face of challenges.
Top 12 Universities In The World To Study Economics
Below are some of the top universities in the world where you can study economics
- Massachusetts Institute of technology, United States
- Harvard University, United States
- London School of Economics and Political Science, UK
- University of Oxford, UK
- Erasmus School of Economics, The Netherlands
- University of Melbourne, Australia
- ETH Zurich, Switzerland
- Hongkong University of Science and Technology, Canada
- Bocconi University, Italy
- Stanford University
- University of Pennsylvania
- Columbia University
I believe you now understand the reasons why we study economics. The subject of economics is important to everyone (Individuals, businesses and the government) , no matter your field of specialization. Economics is a subject that teaches us how to use limited/ scarce resources in a way that would meet our ever-increasing needs. If you are a business person, you need the subject of economics more if you are going to remain relevant in business. You can even take up short courses in economic online to boost your knowledge of economics. Its that serious!
Frequently Asked Questions
Why do we need to study economics in Nigeria?
The study of economics is highly important in Nigeria. The subject of economics is critical in understanding, forecasting and formulation of policies that is needed for sustainable development. The study of economics is important for us to be able to understand the world around us.
What are the main branches of economics?
What are the main branches of economics?
Economics is categorized into two branches: Microeconomics and Macroeconomics. Microeconomics deals with the study of the behaviour of individuals, households and firms in decision making and allocating of resources. Macroeconomics deals with the study of economic factors on a large scale e.g national productivity, interest, fiscal policy, inflation, international trade, etc.
Why is economics significant in our everyday life?
Economics help us to understand the way the world around us operate e.g why people make some choices, how business achieve their goals, how government achieve their mandate, etc.
Who is referred to as the father of economics?
Adam Smith is termed as the father of economics. He was an 18th century Scottish philosopher.
Why should secondary school students be taught the subject of economics?
Students get to understand the world around them. They get to know what causes poverty, unemployment, inflation and how to handle such negative trends.
- https: // economictimes. indiatimes. com- What is Microeconomics
- www. afterschoolafrica. com- 10 Reasons Why You Should Study Economics
- www. educations. com- Top 10 Universities t o study Economics in 2023
- https: // online. hbs. edu- 7 Reasons Why You Should Study Economics