How to Use Economics Equations in Microsoft Excel

Complete economics calculations in Microsoft Excel.

Economics can be defined as the way in which individuals, businesses and governments use resources. Resources are raw materials, labor, land, goods and capital. Vanderbilt University states that economics is the study of how labor, investments and land are used. Economics calculates the cost that one opportunity places on another opportunity. If you choose to purchase one item over another, the enjoyment of the item that was not purchased is the opportunity cost. Economic calculations are used by businesses, governments and individuals to make decisions based on expected outcomes, such as producing something based on the expectation of selling it and making a profit. Microsoft Excel can be used to simplify the computation of economics calculations.

Things You'll Need

• Computer with Microsoft Excel

Instructions

1. Open Excel 2007 and click on the tab labeled "Data" at the top of the screen. In Excel 1997-2003, open Excel and click on "Tools" at the top of the page.

2. Look for "Data Analysis" at the far right-hand corner of your screen in Excel 2007. Look for "Data Analysis" in the "Tools" drop-down menu in Excel 1997-2003. If "Data Analysis" is not available, go to step 3. If "Data Analysis" is available, skip step 3.

3. Click on the Microsoft Office button at the bottom of your screen if you do not have a "Data Analysis" option. The Microsoft Office button is located in the upper left-hand corner of your screen and is isolated in four squares: red, blue, yellow and green. Click on "Add-ins" on the left-hand side of the screen. Go to "Manage" at the bottom of the screen and select "Excel Add-ins." Click "Go" and a small box will pop up. Select "Analysis Toolpack" and click "OK." You may have to install the ToolPak, but the dialog box will walk you through the process; just follow the prompts. In Excel 1997-2003, simply select "Add-ins" and select "Analysis ToolPak" and "Analysis ToolPak-VBA."

4. Input the data you are trying to calculate into your spreadsheet by entering the data manually, taking it from a different worksheet, copying and pasting it from an existing spreadsheet or using a text file.

5. Use the "Data Analysis" option to manipulate your data. Highlight the data you wish to analyze. Click on "Data Analysis" either through the "Data" tab in 2007 or the "Tools" menu in 1997-2003 and select the type of analysis you are trying to complete.

References

• UC Davis: Excel 2007 Basics - Access and Activating Data Analysis Tookpack
• UC Davis Department of Economics: Colin Cameron Excel
• UC Davis: 2007 Excel Basics - Data Manipulation
• UC Davis: Excel 97 Basics: Access and Documentation
• UC Davis Department of Economics: Colin Cameron Excel97 Introductory Tutorial

Resources

• Vanderbilt University: What is Economics
• MoneyInstructor.com: Economics Opportunity Cost, Definition, Example, Calculation
• George Mason University: Economic Calculation - The Australian Contribution to Poltical Economy