why do you learn economics

WHY DO YOU LEARN THE ECONOMICS?

What is economics?
Economics is a study of how goods and services are produced, distributed and consumed. It focuses on how the economic agents; the sellers and the buyers interact with each other and how the economics flows around the world. Every single people should have a better understanding on it as it affect almost every single decisions in our life, as well as government’s decisions for our country.

Economy can be divided into two branches; microeconomics and macroeconomics. Microeconomics determined how individual or firms make decisions to allocate limited resources in the market where goods or services are available. It helps people to examine how the decision can affect the supply and demand for goods and services can determine the prices of goods and services. In addition, microeconomics concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by the buyers and seller.

Macroeconomics is in the other hand. It refers to the larger scope of economy that involved national economy as whole and provides a basic knowledge of how things work in the business world. Example, an industrial sector, oil and gas sector, and food and beverages sector, is not considered as a specific part of any of these sectors.

In economics, there are four systems. The first one is a traditional economic system. Basically, it is the first system used even before the century. It worked by exchanging goods for other goods. In its familiar term, barter system. This economic system is not very dynamic as things do not change much. Standards of living are static as individual do not enjoy luxury but economic behaviors and relationship are predictable. People know what to trade, who to trade, and what to expect from others.

The second type is the capitalist system. It is applied by the United States, Canada, Japan, and Germany. The privates sectors are most productive because they are profit oriented. There is no intervention from the government in the economic activities but suggests the economic regulation that involves minimal state involvement such as contract law. The system allows the consumer to determine the price of goods and services and there is right to own property. Competition is very tight because all firms want to collect profits and this stimulates a healthy competition air. Innovation and research become more invisible when there is advancement in the science and technologies.

The third system is command economic system. It is applied by North Korea, Cuba, and China. In this system, the government determines the economic activities and consumer does not have sovereignty. Besides that, there is no competition and profit oriented firm as the economic activity is controlled by the government. In term of freedom, the system does not offer the freedom of having business. The private enterprise does not exist and all the activities run by the government. Government may produce product whereby not required by the public.

Last but not least, the mixed economic system. This economic system is run by the government and yet the private firms. It is practice by most democratic countries such as Malaysia, Thailand, and Singapore. In this system, the price will be determined by the market mechanism. The government will provide all the amenities and private sectors will conduct their business activities without restrain. However, government will levy taxes in order to control the income disparity in the economy. The government will try not to interfere in the economic activities except for the illegitimate industries such as pharmacy and drugs control. Besides that, in this system the government will execute projects that unprofitable for the private sectors and the project crucial for the societal interest. Example, the electrical infrastructure development. Because of the project is expensive in term of its building cost, the government is responsible to build it. It is worth for the citizen as it is useful to all.

Why do you learn the economics?
1. To know the world better
We should learn about economics to understand, live and exist in the present world and to know how the business world functions and affect the world. It let us gain a much deeper understanding about the surrounding economics, either locally and globally. It let us have a better understanding on how the worlds works and learn a lot of fascinating discipline such as history, politics, culture, finance and much more. It helps us learn more about societal and global affairs, to become better informed in so many ways and teaches us about choices and decisions making. Without economics knowledge, it would be impossible to understand the world.

Economics teaches us about depression, poverty, inflation and ways on how to avoid such situations in the future. It also let us learn about economics development of a country, international trade and finance, world and local products’ market price, management of inflation, different between capitalism and socialism and how it affect the government policies making.

Economics does inform and give us insight about most events occur around the world like how and why a government or a business chooses certain decisions or solutions for certain problems. It gives us a better understanding on how the world economics work and how does the government budget and spend the money on which of programs.

Economics is a great thing to have as it can help to improve a country’s development by analyzing the methods of the past countries as guidelines for creating or abolish any law by making better decisions. We learn from the experiences of the countries in the past and come up with how to avoid those problems, so we can build a better future for our country and those to come. It also demonstrates how the world functions and the hardship a country have to face in order to manage and making the best decisions for their country.

2. Have better judgment in decision making
Economics help you make better decisions on daily basis of life. It teaches you how to make future predictions based on the current information in hands. Each decision we make have its own costs and benefits. It somehow helps us predict the future by knowing certain decisions affect certain things. Even a small little detail might bring a big impact on it.

Those who learned and trained in economics are good at problem solving. They will always identify the problems to come out with certain options of solutions. They check, analyze and determine which data are relevant. Then they objectively weigh the costs and benefits of every single option for the decision making which allowed us to do better especially in investment and business finance choices, keep us generally safer from fluctuation and shocks, just by reading the signs, predict it and prepare for the possible consequences.

3. Variety of skills to be learned
In economics major, we will be able to learn a lot of practical skills which useful in our personal and work life. You will learn about calculations, problem solving, analytical decision making, communication in more than one single language, law and more. Knowing about the interest rates, economic indicators and equity market does help in making better decisions about investing and real estates.

For a long term, it shapes your mind by having a useful way of thinking, having an important implication for managerial decisions including demand theory and estimation, production and cost theory, analysis of market structure, determination of interest rates and much more. The skills acquired such as public finance, public choice, human resources, and urban and regional economics are particularly great assets as preparation for government careers.

It also teaches us the real value of money and how to wisely budget and spend without wasting too much of it. All these skills play a big part in getting better choices of careers in future.

4. Higher education major for graduates
“Economics, once considered one of the more difficult subjects for undergraduates to grasp, is the top major at Harvard, Princeton, Columbia, Stanford and the Universities of Pennsylvia and Chicago; second at Brown, Yale and the University of California at Berkeley; and third at Cornell and Dartmouth.”

(Economics, Once a Perplexing Subject, Is Enjoying a Bull Run at Universities, by Tristan Mabry, Staff Reporter of THE WALL STREET JOURNAL, Nov. 30, 1998, WSJ)

Economics is an excellent major especially for those planning on going to graduate schools in economics, public policy studies and business. All those skills learned in economics study support most of university major.

Undergraduate programs do not train students to be a professional economist but the undergraduate major prepares the students to fill the graduate work requirements for becoming an economist. It is an ideal preparation for continuing on a Master of Business Administration degree at any graduate business school.

For economists with Master or Philosophy Doctor Degrees, they usually employed as teachers and researchers in academia or as researchers, forecasters and administrators in both government and business.

Most graduate business school encourages their student to have a broad liberal arts background as an extra help in the future career. But in the master degree programs, it is usually consist on considerable portion of economics for example a largely applied microeconomics. Those with good backgrounds in economics have an advantage in many master degree programs.

5. Better careers opportunities
Economics is an extremely practical field and provide an excellent and solid careers’ preparation and it can help us with our future careers. The skills can be applied in many fields of employment like government, politics, finance, business, law, education, administration, journalism, consulting and more. Most of economics majors have worked in a wide range of works by using the skills they learned such as purchasing and sales, financial analysis, banking, management and system analysis. This diversity demonstrates the general applicability of economics majors’ analytical skills is useful in both public and private sectors. All of these are possible since the economic way of thinking is analytical, clear, concise and rigorous.

REFERENCE.
Why study economics. (2012, 01 20). Retrieved from http://www.cbehome.uidaho.edu/default.aspx?pid=28400
Why study economics? (2012, 01 20). Retrieved from http://economics.about.com/cs/studentresources/a/why_economics.htm
Economics | why should you learn economics. (2012, 01 20). Retrieved from http://www.getsmarter.co.za/blog-business/1018-economics--why-you-should-learn-economics
Student essay on why study economics. (2012, 01 20). Retrieved from http://www.bookrags.com/essay-2005/2/7/18301/96642