What are the Importance of Studying Economics? Explained

Importance of studying Economics

Importance of Studying Economics – The study of Economics has been in existence for ages. The various principles and theories of Economics have been of great benefit to the world at large. Every course worth studying, as a student of Economics, you may have asked yourself this question before studying the course; “what are the reasons that makes Economics worth studying? Notwithstanding, the ideologies of high profiled Economics scholars have helped in shaping the world. They have provided solution to economic problems facing nations, influenced human choices and decisions, and it is even applicable in the day to day running of businesses.

An an Economists, I will like to let you know that studying this subject is one of the best decisions that I have made. It will help you in knowing the best decisions to take in your business, understand the Economic situations around you and be able to make inputs when necessary. It is also worthy to note that it will be of great help to you when you are employed in a firm or organization that needs your services. “You will always think ahead of others.”

Why is it important to study Economics? It is of no doubt that the study of Economics will continue to be relevant even with the change in ages. Economics helps us to be well informed citizens, helps leaders to solve the economic issues facing them. Infact, the study of Economics is worth your time and effort.

What is the 5 importance of Studying Economics?

Here, I am going to summarize the 5 major reasons why you need to study Economics;

1. The study of Economics will equip you with great analytical skills needed in your workplace

One of the things that Economists do is to study the observable behaviours of individuals and institutions who are involved in the production of goods, consumption and exchange of goods and services. When necessary, they gather information regarding Economic activities and outcomes. They classify the information, interpret and analyse it and make use of various Economic theories and principles in solving any issues relating to it. This great skill is necessary in so many organizations that you may find yourself.

2. It will help you in the smooth running of your business

This course will help you in taking decisions concerning your business. You will be able to identify the goods or services that are in high demand, the best technology to use and how to maximize your profit. It also help you to understand when to source for additional capital for your business or merge with another firm.

Economics helps in studying the economic recession and knowing the best decision to take. It also enables business owners to know when to produce less or more output. As a business owner, there are other businesses that maybe rendering the same services or producing/supplying the same goods with you, this therefore calls for competitiveness. The knowledge of Economics will enable you to know how to utilize your capital and resources to satisfy the needs of your customers while at the same time staying ahead of your competitors.

3. It will help you to take the best financial decision

Economics will help you to understand when and how to spend your money. It helps you to know how to make budget with your income. You will be able to study the exchange rate, government budget deficits, interest rates, foreign exchange rate and its differences between import and exports. All this will help you in promoting your personal income, savings and businesses.

4. It helps consumers to make a better buying decision

The study of this subject will equally guide you as a consumer to know how to spend your income inorder to get the best satisfaction. Knowing fully well that resources are limited and therefore limits our options. It is therefore necessary to make choice because we can’t have all that we need.

These needs are arranged in a scale of preference with the most pressing need being at the first position. The choice of what to buy can easily be solved with reference to the scale of preference. In another instance, the habit of buying when the level of income increases can be cushioned with the knowledge that the best time to spend more is when the prices of goods and commodities falls.

5. It helps employees to make better employment decisions

If you become a manager or an executive of an organization, the knowledge of Economics will guide you in knowing when to expand employment. Know when to adopt other technologies that will save you the cost of using human labour. It will also help you in determining the cost of labour. When employing workers, you will be able to employ those whose salary level will not be higher than what the organization can comfortably afford. For instance, it should be in a situation whereby you will be left with enough profit after paying your workers.

The knowledge of Economics will also help you to identify the sector or unit in your organization that needs more workers. This explains the reason why in a production company, the main producers of goods should be higher in number than others in the administrative units. Unless it is in a situation whereby other forms of labour such as machines does the major work.

As long as humans continues to exists, the study of Economics will continue to be relevant. The study of this course offers you the opportunities to work in many organizations and firms. It also gives you the knowledge to function effectively as an entrepreneur. I believe I have answered your question on “What are the 5 Importance of studying Economics?.” Keep visiting for more interesting articles.

Also Read; Why is Economics Considered a Social Science? Reasons

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