Economics shows us how the behaviour of the people, the private enterprises, and the government influence the working of our economy.It teaches us what all is happening in the world that we live in, and it is a changing phenomenon as in the economy we live in nothing is stagnant. This makes the subject as one of the most interesting to deal with. It is one of the most important social sciences that a student can take up to their undergraduate or postgraduate level. It enhances the decision-makingpower of the above three entities so that they work rationally.
It helps us to answer the three most important questions of the economy:
- What to produce?
- How to produce?
- How to allocate the produced goods?
There are two main branches of economics:
One deals with single economic terms like production, cost and welfare economics while the other deals with theeconomy as a whole like national income, market and foreign exchange respectively.
As economists we get to play two leading roles:
- Firstly, we need to develop various models in order to know effects of changes in policy and market behaviour.
- Secondly, we analyse these changes using various statistical tools.
So this subject teaches us how to work theoretically, diagrammatically as well as analytically. For each and every study we need to provide all the above three explanations to prove it right.
It offers us ways to know about the working of financial institutions of our country and what is going on in these financial bodies. Thus by learning about this subject you can develop an extensive knowledge of day to day working of the economy as a whole.
Reasons for taking up economics as a career:
There are several reasons why students take up economics in their higher education and make their career in this field. It is going to teachyou many new things which will help to deal with day to day living. Being one of the most interesting subject students tend to develop a liking for this subject. Here are the reasons why this subject is loved so much and how does it help:
- Helps you to forecast the situations:
As an economist one can predict what is going to happen in the near future, and accordingly they manage their proceeding. These fore casts are done by looking at the data from the past and the present situations. Forecasts made using these statistical data and tools are very accurate thanother methods.
- Helps you make a good advisor:
Knowing this subject will help you to understand the reasons behind cyclical movement of the economy namely recession, depression, recovery and prosperity. At the time of any of these phenomena, you can let people know the reason behind this and also suggest those ways to move from recession to prosperity. This will make you popular among everybody.
- Helps you to know the meaning of diminishing marginal utility and opportunity cost:
As economists, you can explain everybody the concept of utility and how it decreases when you have anexcess of something. You can show them various examples from day to day life to make the concept clearer.
This subject also helps you know the meaning of opportunity cost that is the cost of sacrificing one thing for the other. This will help you take right decisions in life.
- Helps you take decisions rationally:
Economics allow you to make decisions based on your utility that are the things that maximize your efficiency. It assumes that the main aim of the people is to maximize their utility while consuming anything. This makes you a rational person and helps you take correct choices.
- Helps you get job in a reputed company with a good amount of salary:
This is the most important reason why student opt for this particular subject. Apart from the love for this subject, the future scope of economics is very bright, and students nowadays like to take up those subjects as their career which will help them to earn a highly paid and respectful job.
- Helps you to know the importance of other subjects:
Some of the economists argue that studying economics is far better than studying subjects like history and geography. But it has been opposed and debated by various people.
- Helps you to get familiar with terms like Economies and Diseconomies of scale:
Economies and Diseconomies of scale mean the result of doing something. If the result is productive, then it is termed as Economies of scale. Otherwise, it is termed as Diseconomies of scale. This concept can also be used in day to day life to analyse the result of your work.
- Helps you to contradict each and every fact:
While studying economics, you will come across various theories and factsthat contradict them. So after you are done with your course, you will be well habituated in contradicting whatever you are saying or doing. This is how an economist develops.
These are things that one gets to learn and the benefits. But there is also some criticism attached to it like, all the theories in economics is based on assumptions. These assumptions can be true as well as false when it comes to your daily life. So it becomes difficult for the economist to use these theories practically.But this fact will never reduce the love for this subject that students have.