Why study economics ?

 Why Study Economics?

                           

Prelude

We live in a society where our wants are unlimited,we have to buy so many economic goods and services to satisfy these wants.For that,we must have command over sufficient amounts of resources, that is not an easy task.But economics as a science,makes our task somewhere easier.

It is the study of how societies manage their limited resources to satisfy an unlimited number of demands. It is a structure through which we are able to understand the complex mechanisms of human behavior, markets, and policies which impact our day-to-day life, but it is much more than a few graphs and equations.

However, why study economics? In a comprehensive and broad context, understanding the foundational ideas of economics provides vital knowledge about the mechanisms governing our society. Economic theory offers a framework for scientific analysis and decision-making that goes beyond boundaries and subject areas, from individual financial decisions to international policy decisions.

We'll discuss a few powerful points in this introduction for why studying economics is not only useful but also essential to understanding the complexities of the subject matter.

                                    

                                           

The following reasons may be considered worthwhile to study economics:

1. To help understand the mechanism of optimum utilization of scarce resources:-

We know that the productive resources are  not only scary, but they have alternative uses.As a special branch of knowledge, economics is very helpful not only to individuals,but also for the society as a whole. It solves the problem of optimum utilization of scarce resources for the maximization of socio-economic welfare of the society in general.

It shows utilization of scarce resources to maximize the level of satisfaction for the individual at micro level and welfare of the economy at Macro level.

2.   To make us aware about economic policies:-

Another important reason to study economics is that it gives better understanding of various economic policies and their impact on the socio-economic condition of the stakeholders.Proper understanding of the usefulness and limits of various economic policies and their possible impact not only enlarge the vision of the citizens but also make them good administrator, executive officer and policy makers in their future life.

Impact of budget deficit,rise in tax burden,rise in money supply, higher public expenditure and implementation of development projects are understood if we have knowledge of economics.

3.To understand the society in a better way:-

Thirdly economics helps us understand the world arround us in a meaningful manner. It provides the solution to the problem that we may come across in our day today life.

These include problem like why do prices of tomato rise so high in some parts of the country while it is not so on other regions?   Why standard of living of tribal belt is so low while the creamy layer is developed regions live a luxurious life?  Why land rent is so high in urban while it is not so in the rural areas?  Why do onion prices rises so high during rains while the farmers face distress sell during harvest?

Study of economic theory bring solutions to those questions.

4.To make us active participant in the economy:-

We have to make many economic decisions in our day today life. As a student, you have to allocate your precious time towards home work, attending college, going to the library to read reference books and journals and going to the field to take part in games and sports and of course helping our parents in different household work.

You have also to allocate the pocket money provided by the parents on different goods that you need.Similarly as a farmer, business executive or store manager,one has to make rational decisions regarding the price to be charged. As a wage earner, family head or a housewife,one has to decide how much of income is to be spent on consumption and how much to save for the future. Studying a subject like economics makes one empowered with the knowledge of different tools so that he or she can make the best decision as and when required.

                                                

5.To understand the mechanism of solving economic problems:-

 Above all,the study of economics helps solve the central economic problems like what,how and for whom to produce? in a meaningful manner.

If a society is successful in solving these problems, then socio economic welfare of the people will be maximized.

Conclusion:

The above points are discussed about why study economics?  and how it helps to understand society in a much better way.