Uses of Economics

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Economics is a branch of the social sciences and a required course in many colleges and universities around the world. The study of economics fosters a greater understanding of the economy as a whole, as well as of events in the news. Economics also prepares students for advanced study in business, law, government and other disciplines.

Identification

  • Economics is the study of how societies allocate scarce resources. Society's wants are unlimited, but the means for satisfying them are limited. Economists study how societies determine what to produce, how to produce and for whom.

Benefits

  • Knowledge of basic economic principles such as supply and demand strengthens students' understanding of economic activity, and of the interactions of consumers and businesses.

Significance

  • Increasingly, economic activity occurs on a global scale, with goods and services circulating among nations faster and with greater frequency. The study of economics deepens student understanding of world economic events and how they affect the domestic economy.

Informed Citizens

  • Government policy has an economic dimension to it, and actions by elected officials can have positive or negative economic consequences. Knowledge of economics provides a more sophisticated understanding of government policy and its effects.

News and Current Events

  • Economic events at home and abroad are a staple of print and broadcast news. Studying economics brings a greater understanding of events in the news and how they impact you as an individual.

References

  • "Principles of Economics"; N. Gregory Mankiw; 2003
  • Photo Credit "Pay me in Euros" is Copyrighted by Flickr user: Mike Licht, NotionsCapital.com (Mike Licht) under the Creative Commons Attribution license.
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