Why is it important to study economics?

Question

Please give an example of it and expound.

Answer 1

Economics is a very important sience and someone can find many arguments to support it.

Firstly economics is a social sience. That means that it gives explanations to human behavior in aspects that other social disiplines can not deal with. Making, managing and consuming money is a complecated process that is affected by rational and irational decisions and behaviors.Money also affects rational and irational behaviors. Economics try to explain these decisions and rationalize them as much as possible. In a way understanding economics helps you understand humans.

Secondly, in the modern world, everything is based on money. Political decisions are based on the economical impact that they will have. Countries stop or begin communicating for economical reasons. New technologies are promoted or implemented based on their economical impact.

Thirdly they are a very good consultant to make plans and strategies. Through economics you can understand better your impact of your decisions such as on what to invest, what car to buy, what profession to follow,how to manage your income etc.

Finally I want to make the most important argument, according to my opinion. Economics help you rationalize and coprehend issues that otherwise are too difficult to understand or find the best solution. Economics can find the value in monetary terms of human life (it is not very ethical but it is a common practice and has lead to many really usefull investements such as safety in factories etc), education, health, strong family bonds, the enviroment etc. These things are easy to understand their importance but how much important are they? For you the value of life is the highest for Hitle it was not. In other words it gives a common scale that people can use to decide on many things. No other sience can do that. For example the fact that in EU the cars by law should have seatbelts, ABS systems, airbags and all the safety systems came from the calculation that the cost of installing all of these is much less than the cost of a lost human life in the society. This is very cynical but unfortunately this is how all the goverments think.

Please also note that you live in globalized world that is globalized because of the economy. Even a song says "Money makes the world go round".

Of course I believe that all sciences are important to their own field.

Answer 2

Ok.. let's say you suddenly find yourself in a position where you need to improve the conditions of a community... say you are the mayor of a city.. or the mayor's advisor...

now... you get a choice..

You can go into debt to buy an expensive machine that will produce widgets very fast... but your people are not educated enough to repair it if it breaks.. so you will have to hire outside help to run it and fix it.

Or.. you can go into debt to buy a cheaper machine.. that will not produce so many widgets but your own people can run it and maintain it...

Which do you buy?.. or do you buy either one?

In my opinion... you should buy the one that your own people can run and maintain... your people become more educated and eventually would possibly be able to run and maintain the more expensive machine. .. the community needs more than just money to thrive.

Answer 3

Economics is very important than every body thinks but economics is no every thing . this sentence means that other part of a social life really and nearly depends on economics . in macro view an ignorance to economics may lead to national mess or poorness or other kind of problems and in micro view in each person or family having a plan or strategy for earning and burning money may keep into account as a fundamental factor to existance of colony.
for example :
A Person must calculate all of his/her income for next year . in this very he / she can plan for money he/her can spend for each life items on next year . in the other words you can budgeting your money and spend as well as you can . one better way is planing for income and spending for each month .

Answer 4

1 word........ M O N E Y !!!!!!!!!!!!!!!!

It will give you a greater understanding of the power of money domestically and internationally... and ways you can use money to your advantage!