Why study Economics ?

November 25, 2022

5 Reasons why anyone should study Economics?

Do you know your daily life activities are an application of economics principles? Do you know that understanding and the study of economics can boost your professional career and ease up your personal life?

Now you’d ask, how? If yes, then only scroll down without clicking anywhere else. Unless you are planning to check out PSP college’s courses, of course.

When you go to a mall to buy a dress for an interview and there you really like another dress which is out of your budget. And understanding the need of the hour you decide to buy an interview dress only. Do you know what you just did here?

You applied the opportunity cost principle where in order to gain something you sacrificed another gain. Opportunity cost is basically the best return forgone to gain something else and this is just one example of the very many other economic tools we use.

But had we known better wouldn’t we be able to use economic tools to an optimum? If you agree then let’s check out the reasons why study economics.

Improved problem-solving & reasoning skills

Good knowledge of economics tools broadens the mindset of an individual. That’s because the study of economics is the practice of analytical tools which are simply a part of our lives. And the only benefit of studying something is when you apply its frameworks in real life.

Let’s imagine a situation in which you have the decision to make between two things both of which will give you pleasure but one is your need and the other is your desire. And if your reasoning skills are strong enough you’d be able to make a quick decisions which will also improve your problem-solving skills.

Numerous Career Prospects

Studying of economics has multiple benefits, one of which includes a large number of career options. As we have already established that economics is everywhere, therefore many companies and employers hunt for great economists. But having said that being an economist isn’t the only option, you can be a marketer, salesperson, entrepreneur, financial advisor, insurer, professor, manager, broker, financial consultant, and many more such career prospects are available.

On-the-spot decision-making skills

A person with an economics mind is the one with the best decision-making skills. You may not have an economics degree but even a general knowledge of the subject and regular practice can enhance analytical skills which helps a person in making very good and reasonable choices that are profitable for the future. In fact, the capability to make instantaneous smart decisions which especially employers and reputed colleges appreciate.

Optimum use of Economics tools

Having an economics degree can only be beneficial if you use its knowledge and tools to an optimum. At a basic level, we have studied marginal utility, opportunity cost, sunken cost, etc. We have also studied their use on both a micro and macro level. However, being an economics major, your ability to utilize your knowledge to make real-life decisions can build your personality and mental capacity.

For eg- In an interview, every interviewer asks questions that demand the use of economics tools and if you are able to use your presence in your mind and analyze the questions then there are maximum chances of you getting selected.

Great preparation for future competition

The importance of an economics degree is realized when you face competitions and challenging situations in your life where you are under the spot. When you go for higher education or a high-profile job for that matter. Your interviewer/employer expects a person with a strong analytical, reasoning, and spontaneous mind frame. That’s because be it a business or a political front or a normal life for that matter, smart and economical handling of situations proves to be successful and profitable.

Conclusion

The importance of Economics is a vast topic to be discussed yet these aforementioned five points cover the major portion of it. Why studying economics is important doesn’t exactly mean that you have to build a career in it, however, the understanding of the subject can really impact your life. But if you are looking for an economics profession then sincerely studying it is very crucial as an economics degree can massively train your mind and personality for impromptu situations and make you a prudent decision-maker.