Learn Economics With Online Courses & Programs
What is the definition of economics?
Economics is the study of how goods and services are produced, distributed and consumed, exploring the factors that affect supply and demand. It examines how markets work, how wealth is distributed, and how scarce resources are allocated. While the stock market can be a reflection of the economy, economics seeks to more broadly understand how people, businesses and countries choose to spend their money. Microeconomics refers to the study of how individuals make spending decisions, while macroeconomics looks at the economy as a whole.
Economic theory is widely studied around the world by researchers who seek to better understand the impact of certain policies or shocks on the economy. What is the effect of rising gas prices on household spending? How does incurring larger debt affect an individual’s long-term financial health? Will spending on government health care programs cause inflation? Researchers and economists aim to answer these kinds of questions using famous economic theories like Keynesian economic theory, which argues that government monetary and fiscal policy can stimulate business and increase employment.
Reasons to study economics
With excellent career prospects, high potential salaries, and plenty of other benefits, it’s no surprise that international students choose to study economics at university. But what is economics, and what are the main reasons to study it?
What is economics?
Economics, while often focusing on finance, is a broad field that looks at resources, such as money or natural resources like oil, and studies how we use them.
An economist uses historical trends and detailed forecasting data to study human behaviour and analyses the potential reasons for it. This information is very useful to both private organisations and public sector entities, such as national governments.
The industry itself covers a wide range of disciplines, and so is often broken down into microeconomics—which focuses on an individual’s behaviours—and macroeconomics—where a whole economy is studied.
Why study economics?
1. All-encompassing
Economics affects our daily lives. Tax, inflation, interest rates, the labour market, wages, and more are all a part of economics. A degree in the subject is a fantastic way to better understand these important issues—this knowledge will be useful in your career, and in your personal life, too.
2. High salaries
Graduate economist salaries start high, and there is plenty of upward movement once you gain more experience.
According to the Complete University Guide 2021, economics graduates are among the highest paid in the country, with an average starting salary of £29,700. Of course, over time this will increase as you gain more experience. The average salary for a UK economist is just over £46,000 but more senior roles can exceed £75,000 (Glassdoor, 2021).
3. Strong job prospects
Not only is an economist usually well-paid, but they’re also sought after by many businesses. By studying economics, you will gain a thorough understanding of modern-day economic theories and models and soon be able to show employers you’re ready for a lucrative career as an economist.
While you may choose to become an economist, there are plenty of other job roles that would welcome an economics graduate, such as a banker, data analyst, or accountant.
4. Transferable skills
Gaining transferable skills is an important part of your university studies and can really boost your employability. A degree in economics will see you developing plenty of skills that any employer will find important:
Problem solving
Analytical thinking
Research
Spoken and written communication
Presentation
Mathematics
5. Combine with other subjects
As the field is so broad, and with it widely impacting our lives, it makes sense that universities often offer economics combined with other subjects to create a Joint Honours degree. For example, at the University of Aberdeen there are lots of options, including:
Economics and Computing
Economics and Finance
Economics and Geography
Economics and History
Economics and Mathematics
So, wherever your interests lie, the University of Aberdeen can accommodate you and your goals.
A Joint Honours degree has plenty of benefits too, including:
It will have a wider scope than a Single Honours degree, meaning you will have the chance to learn two subjects in-depth — something employers will appreciate
You will be able to use your learnings from each subject, improving your academic work and giving you a more well-rounded understanding of economics
Studying two subjects allows you to discover which field you prefer, which may help deciding on your career aims.
Why study in Scotland
The UK, which Scotland is a part of, is famous around the world for its world-class higher education system and impressive graduate outcomes. An economics degree from a Scottish university, like the University of Aberdeen, is a great way to gain useful subject knowledge and key skills that employers are looking for.
The University is ranked 20th in the UK by The Times and The Sunday Times Good University Guide 2022.
Aberdeen’s prestige is recognised globally, and is one of the seven "ancient universities" in the UK, as the University’s first college was built in 1495. Aberdeen’s campus combines historic and modern to create an engaging study space.
How to study economics in Scotland
At the University of Aberdeen International Study Centre, we prepare international students to study their undergraduate degree at the University.
During your pathway programme, you will boost your English language levels and academic skills to the level needed for success at the University of Aberdeen. You will have the opportunity to adjust to life in the UK as part of a friendly, international community, aided by expert teachers and staff.
The three-term Undergraduate Foundation Programme in Business, Economics, Accounting & Real Estate will put you on the path to studying your undergraduate economics degree at the University of Aberdeen. Equivalent to the first year of a four-year Scottish degree, this programme will equip you with knowledge of key economic principles and useful mathematics skills.
To start your journey towards an economics career, apply to the University of Aberdeen International Study Centre with our easy-to-use application form today.
Study Skills: Learn How To Study Economics
How to Study for Economics
The primary focus of economics is the analysis and description of the production, distribution, and consumption of scarce goods and services. Economics is considered a social science because it attempts to explain behavior of individuals, groups and organizations. However, unlike many social sciences, economics is based heavily on math and statistics. In fact, at the college level, most students are required to complete several upper-level math and statistics courses as prerequisites to majoring in economics.
Economics also tends to be one of the more challenging subjects for students – especially for those in their first and second year college who didn't study economics in high school. If you have the opportunity to study economics in high school, do so. It will prepare you for more challenging economics courses in college.
With respect to the study of economics, there are four levels of academic performance students need to demonstrate in order to achieve success. These include:
Knowledge
Comprehension
Application
Analysis
Knowledge
The first level of academic performance in the study of economics is knowledge. Gaining knowledge consists of learning and remembering specific material, including facts, definitions and explanations. Knowledge type questions require very little, if any, analysis and are typical of high school level economics courses. Notwithstanding, knowledge is the basis of learning and is required in order to progress through other levels of academic performance.
The following is an example of a knowledge question.
QUESTION: Differentiated products is a characteristic of:
(a) Monopolistic competition only
(b) Oligopoly only
(c) Monopoly
(d) Both a and b
ANSWER: a. monopolistic competition only
In economics, only about 15-20% of test questions are purely knowledge based at the college level.
Comprehension
The second level of academic performance in the study of economics is comprehension. Where knowledge focuses on the acquisition of material, comprehension focuses on grasping the meaning of material. In economics, the primary methods for demonstrating comprehension are (1) converting material from one form into another (e.g. words to numbers), (2) interpreting material (e.g. explaining), and (3) estimating trends (e.g. predicting future effects and implications). Comprehension represents the lowest level of understanding within the scope of economics.
The following is an example of a comprehension type question that could appear on an economics test.
QUESTION: If Dell computers and HP computers are substitutes, then an increase in the price of Dell computers will result in:
(a) A decrease in demand for HP computers.
(b) A degree in quantity demanded of HP computers.
(c) An increase in demand for HP computers.
(d) An increase in the quantity demanded of HP computers.
ANSWER: C. An increase in demand for HP computers.
About 30-40% of the test questions you'll find on college-level economics tests will be comprehension.
Application
The third level of academic performance in the study of economics is application. Once students have obtained knowledge and comprehension of economic concepts, principles, laws, and theories, they're expected to use and apply material in real world situations.
An example of an application type question that could appear on an economics test includes the following.
QUESTION: The preceding Wall Street Journal article describes how a decrease in automobile prices caused an increase in quantity sold. This illustrates the:
(a) Law of demand.
(b) Direct relationship between price and quantity demanded.
(c) Law of supply.
(d) Indirect relationship between price and quantity supplied.
ANSWER: A. Law of demand.
At the college level, about 30%-50% of test questions are application.
Analysis
Analysis is the fourth and final level of academic performance with respect to the study of economics. Analysis is the ability to break down material (including economic theory) into its individual components in order to gain a better understanding of its overall organizational structure. Analysis typically entails (1) identification of parts, (2) gaining an understanding of the relationship(s) between parts, and (3) being able to identify the organizational principles and laws involved.
An example of an analysis type economics test question might include the following.
QUESTION: If a price ceiling of $10 was in effect in Figure 3.4:
(a) A shortage of 20 units would occur.
(b) A surplus of 20 units would occur.
(c) A shortage of 10 units would occur.
(d) A surplus of 10 units would occur.
ANSWER: A. A shortage of 20 units would occur.
Analysis questions typically make up about 10-15% of test questions in upper level economics courses.
Survival Strategies for Economics
Even though economics is a social science, it can be as difficult and demanding as any of the more challenging academic subjects, including math, chemistry, etc. To do well in economics requires time, dedication, and good study habits. The following are study strategies, techniques and habits for success in learning economics.