The Purpose of Studying Economics
Ask most students in an economics class why they are there, and most will probably reply that the class is a requirement for graduation. While it is true that most colleges and universities require students to complete at least one economics course as part of their core studies, the benefits of the class extend far beyond the mere fulfillment of graduation requirements. Studying economics confers a range of personal and professional benefits.
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Function
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Studying economics equips the student to be a more informed participant in the modern economy, writes Harvard economist Gregory Mankiw, a former White House adviser, in his "Principles of Economics" textbook. Economics studies the ways in which individuals, families, business firms and entire societies allocate scarce resources to satisfy their needs and wants. Students will participate in the modern economy as consumers and producers, allocating their resources, such as time and money, to achieve their needs, including food, shelter and leisure time.
Benefits
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In addition to making the student a more sophisticated and knowledgeable participant in the economic system, studying economics provides valuable insight into the role of government in an economy. One of Mankiw's principles of economics is that government can sometimes improve market outcomes. Studying economics, he writes, can deepen students' understanding of political and economic events, as well as help them understand the limits of government action relating to the economy.
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Misconceptions
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Many students, especially those without strong mathematical skills, may find the idea of an economics course intimidating, believing that it involves a heavy amount of complex mathematics. In reality, basic economics courses use many diagrams, but involve little or no mathematical or statistical work, according to the economics department at California State University at San Marcos. Only upper-level undergraduate and graduate classes in economics involve the rigorous math and statistics that economists need to analyze large sets of economic and financial data.
Significance
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Many students, as stated previously, must complete at least one economics course during their college careers. Many students choose to major in the subject. Students who do so may find that the knowledge and skills they gain from studying economics can prepare them for successful careers in business, finance, consulting, government and more. A survey in "Business Week" magazine asked corporate leaders what they considered the best undergraduate degree. The survey showed that economics ranked second only to engineering as the favored major among the respondents.
Expert Insight
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According to the American Economic Association, the average starting salaries for economics majors ranked fifth overall, behind engineering and computer science fields, but higher than business-related fields and other social sciences.
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