Perhaps the most important benefit of studying economics is learning how to “think like an economist.”
What is economics?
Economics may be a scientific discipline that deals with the manufacturing, use and transfer of wealth. It issues problems that impact on money things and examines the distribution of wealth amongst organizations and people.
Reason for studying economics is strong job prospects:
A degree in economics is notably reputable by employers. You’ll gain a sturdy know-how of ways the all sector works and a selection of exceptionally transferable talents which are prominent through a range of industries and employers.
Examples of the jobs that you could pursue include:
- Data analyst
- Budget analyst
- Market research analyst
- Economic consultant
- Credit analyst
- Financial analyst
- Policy analyst
- Management consultant
- Business reporter
- Financial advisor
- Business development manager
- Policy officer
- Credit analyst
Advantages of studying Economics
The top advantages of studying economics and how it can advantage both your organization and profession:
- You’ll expand Your Vocabulary
Whether it’s scarcity (restrained resources), opportunity cost (what must be given up to obtain something else), or equilibrium (the price at which demand equals supply), an economics course will give you a smoothness in important terms needed to understand how markets work. Even if you don’t use these words often in your current role, studying these economic terms will give you a better empathetic of market dynamics as a whole and how they apply to your organization.
- And Put It into Practice
Economics isn’t just knowledge an elaborate set of words; it’s actually using them to develop a viable business policy. When you understand these terms, you can use theories and frameworks like Porter’s Five Forces and SWOT analyses to assess situations and make a variety of economic decisions for your organization, like whether to pursue a bundled or unbundled pricing model, or the best ways to maximize revenues.
- You’ll understand Your Own Expenditure Habits
Economics will teach you about how your society and its market behave, but you’ll also gain insight into your own expenses habits and principles. For example, Willingness to Pay (WTP) is the extreme amount someone is willing to pay for a good or service. There’s frequently a gap between hypothetical and actual WTP, and learning about it will help you decode your own behavior and enable you to make economically sound decisions.
- It’s More Than Demand Curves
Many people think of economics as just curves, models, and relationships, but in reality, economics is much more nuanced. Much of economic theory is based on assumptions of how people behave rationally, but it’s important to know what to do when those assumptions fail. Learning about cognitive biases that affect our economic decision-making processes arms you with the tools to predict human behavior in the real world, whether people act rationally or irrationally.
- You’ll Learn How to Leverage Economic Tools
Learning economic theory is one thing, but developing the tools to make business decisions is another. Economics will teach you the basics and also give you concrete tools for analysis. For example, conjoint analysis is a statistical approach to measuring consumer demand for specific product features. This tool will allow you to get at the surprisingly complicated feature versus price tradeoffs that consumers make every day.
For example, pretend you work for Apple Inc. and you want to know what part of the iPhone you should improve: Battery life, screen size, or camera. A conjoint analysis will let you know which improvements customers care about and which are worth the company’s time and money.
Blog by- Mr. Mohit Rawat
Asst. Prof., Department of Humanities