Why do I have to take economics - Essay Example

Inserts His/her Inserts Inserts Grade Inserts Here (Day, Month, Year) Topic Economics is the study of allocating scarce resources in such a way that most of our unlimited wants can be fulfilled. This is the so called basic economic problem and everyone has it. The problem produces three questions, what to produce, how to produce and for whom to produce. The main question is that why should I take economics as a course? There are a lot of reasons supporting the cause. First of all the world relies on economics.

All the activities and happenings in the world are based on economics. Economics is the mother of all social sciences. Although the subject is lengthy but still it’s interesting and gives you a clearer view about what is happening around you. For example you are watching BBC, or reading a news paper suddenly you come to the business section. You see that price of a share is increasing or decreasing, you get curious about the factors causing the price to rise or fall but you don’t know about it.

Taking economics will give you a basic idea about the business world and how it operates. Microeconomics, as the name suggests, deals with the basic concepts like demand and supply, elasticity, returns and more basic things. The change in price of a product due to a shift in demand is a basic thing. One other point in favor of opting economics as a summer course is that the student gets to know about the working of an economy. A little crude eyeballing of newspaper or television screen nowadays usually puts some statements in front of us.

Some of them are “inflation rate goes up!” and “unemployment level rise or fall!” the latter one is to some extent clear but the most of us don’t know about inflation. Macroeconomics, as it is deals with large-scale economic concepts like inflation, unemployment and exchange rate. This part of economics deals with how an economy operates, how the general price levels vary and how the demand and supply of money differ to set the value of money. Although there is not a need of getting a know how about this all but still it helps to understand the workings in the economy.

Studying macroeconomics is helpful to those who prefer to be bureaucrats and work in governmental organizations. Understanding about these concepts lets us know how the government is doing and thus one becomes an informed voter and gives his vote to the one who deserves. In addition to that, economics helps a lot in the field of commerce. For instance if some of us want to have commerce as their future plan then economics being the key subject will assist all the other subjects. Secondly, economics gives you a little know how about decision making.

In your professional career there are a lot of situations where you have to take critical decisions to prevent yourself from incurring losses. By studying economics we get to know about cost benefit analysis that is used to take decisions by evaluating the costs and benefits of an economic action. If any of us doesn’t have any plans of going to the commerce side, even then we should take economics because it helps us very much in setting up a business or joining a job. Another major reason why one should take economics is to understand the theory of marginalism that is a specific change in the quantity used of a good or of a service, as opposed to some notion of the over-all significance of that class of good or service.

Economics also tells us about the three sectors of economy firms, government and household. So a little know how of economics is beneficial to us as it adds to information and helps us do many technical things correctly. References “Why should I take economics class? What are the benefits?”, Yahoo answers, Yahoo answers online, Web. 2011. < http://answers.yahoo.com/question/index?qid=20100120175804AAo1TQb> Colin, B. A levels Economics, Cambridge University Press, 2010.