why do we study economics?

Question

I have to write a short essay that answers the question, "Why do we study economics?"
Not onlydo I have to provide MY personal thoughts to this question, but I have to also include the opinions of others.
friends, colleagues, family members, teachers, etc.
and ask them this question and if they think studying economics is important and why or why not. How can understanding economics benefit you as you prepare for life?
Do you think understanding the economy is more important now than it was 20, 30, 50 years ago?

And I don't have anyone to interview, no this is not a term paper or anything like that so please..

Answer 1

Economics by general definition is a study on the allocation of scarce resources among competing (or unlimited) wants.

Importance of economics:

1) Almost all behaviours and decision can be deduced or explained through economics, under the assumption of rational behaviour of consumer to achieve max utility given a limited budget (deciding what to buy with the limited income), and rational behaviour of producer to achieve profit maximisation given limited resource (deciding what to produce given limited raw resources)

2) Examines the principles of demand (DD) and supply (SS) as an economy (macroeconomics) to understand how monetary policies, fiscal policies, unemployment, inflation, aggregate DD and aggregate SS, etc can interact with each other and how changes in one factor could affect the rest. That can aid in the governing of an economy.

DD & SS of a single product (microeconomics) to understand how prices can be determine through, consumer behaviour (study of utilities), production theories (costs constraints), price elasticity of product, market structure of the product in question (monopoloy, oliogopoly, duopoly, perfect competition, game theories), that can aid in maximising benefits to both consumer and producer through satisfying wants and achieveing highest profits efficiently that will result in little or no wastage of resources.

Disapproving views:
1) Figures given through GDP and other indicators does not illustrate:
a) the standard of living (leisure time vs work time, infrastructure available to the people, eg health care, transport);
b) the income distribution between the rich and the poor;
c) the pollution to enviroment in exchange for such economic pursuits

2) consumer and producer behaviour are affected by moral issues and culture beliefs that does not result in rational behaviour. (eg. it would be highly profitable for companies to sell ammunitions to terrorists given a choice, but this would not be in accordance to law)

3) Not everything can be valued. (eg. value of a child saying "mummy" for the first time, priceless i must say)


How understanding of economics benefit you for life?
(personal opinion: i study it because of the prospects and money earning potential it provides, hehehehe)
mainly decision making, helps u to understand your own choices, why you make them.

perhaps its better that you ask someone who is new to economics, i am too deep in it to be reliving my first impression.

Do you think understanding the economy is more important now than it was 20, 30, 50 years ago?

YES! Economics in history has been a study that is understood mainly by intellectuals and businessman who use it to their advantage. Now is the information age, where information is widely available, and more people have a basic concept of supply and demand to aid them in their various path. Although it does not explains everything, but economics most certainly explains alot of stuff, and it will be at one's disadvantage not to give it a thought!

What's more, with all the data that had been collected over the years, there are so much more theories that economists can derive and research upon to prove their effectiveness and accuracy. Although business condition changes between periods of time, but still underlying concepts from the past are important in modelling present time conditions! =)

Answer 2

l study Economics

Answer 3

We study Economics because it's fun to sit in class and watch the Marketing and Journalism majors stare vacantly at the white board, utterly unable to comprehend those SCARY charts and graphs, wondering if they can get away with dropping the class...

Answer 4

We study it so that when we grow up we can be a cooker and housekeeper, especially if we are going to be a woman or are a woman.

Answer 5

Stop trying to play slick and DO YOUR OWN WORK!

Answer 6

girl do your on work trying to get answers i bet you are in my class at virtual online