Studying Economics > Department of Economics > USC Dana and David Dornsife College of Letters, Arts and Sciences

Economists seek to explain and predict all aspects of human behavior. The core economic model starts from the premise that decision makers have a clear goal that they seek to achieve but face constraints in achieving this goal. For example, households seek to maximize their well-being. Firms seek to maximize profits. Government officials may seek to be re-elected. Each of these key economic actors is confronted with tradeoffs. Micro economists study household and firm behavior. Macroeconomists study the aggregate economy in order to understand why some nations are rich and others are poor. Macroeconomists also seek to understand the causes and consequences of business cycles. The tool of econometric analysis is crucial for testing key micro and macro hypotheses using quantitative data.

An exciting development in modern economics is that the field is becoming more interdisciplinary. USC economists interact regularly with health policy scholars, neuroscientists, sociologists, political scientists, statisticians and psychologists.

USC’s economists are active in the policy arena as they work in developing countries, evaluate new U.S policies and advise key international agencies such as the International Monetary Fund.

To learn more about Economics and its impact refer to the American Economic Association website.

Why Studying Economics is a Big Deal for Business Students

Why Studying Economics Can Help Prepare You For an Ever-Changing World

Many people think that economics is a boring and dry subject and should be left to people who love to read books. But the truth is, economics provides you with an understanding about people, businesses, markets, jobs and governments. Knowing these helps you to better respond to emerging threats or opportunities in an ever-changing world, especially if you are a business student. For example, when the world plunged into lockdowns due to COVID-19, many governments scrambled for ways to prevent economic meltdown. But business people who understand economics can turn this threat into opportunities and improvise new ways of doing businesses to stay afloat.

Economics is the study of what drives human behaviour, which lead to decisions made in times of affliction or success. Using scientific methods, economics helps in the allocation of scarce resources to ensure efficiency in today’s world. It encompasses a variety of other fields, such as mathematics, politics, sociology, psychology, finance, public policy, business, law and history. It is of special importance to business students because businesses rely on economics for product research and development, marketing, purchase and resource allocation, and many other strategic decision-making strategies. Understanding all these is vital for any business to operate efficiently, drive out competitors and succeed. In short, studying economics develops in you various competencies and transferable skills, such as critical and analytical thinking, problem solving, research, numeracy and communication. Students who major in economics have the opportunity to delve into many other industries besides business, such as banking, finance, risk management, accountancy, or consultancy.

Economists Help Stamp out Inequality and Promote Social Progress

For those of you who are into the issue of human development, the breadth and flexibility of economics can help you understand issues of welfare impacts, inequality, health and social progress. It equips you with the knowledge of the primary framework of public policy, the communication skills and statistical analysis skills to enable you to engage in public policy debates for health, education and wealth distribution, which ultimately stamps out inequality and promotes social progress.

To sum up, economics helps you to shape and sway the world with your ideas and perspectives. As the great economist Lord Keynes said, “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood.” Indeed, the decisions made by economists make a lot of difference to our daily lives and can either bring world-shaking progress to a nation, or their mistakes can be nothing short of catastrophic.

The vital role of an economist is best summed up by Robert L. Heilbroner in his book, “The Worldly Philosophers: The Lives, Times, and Ideas of the Great Economic Thinkers”:

“This is a book about a handful of men with a curious claim to fame. By all the rules of schoolboy history books, they were nonentities: they commanded no armies, sent no men to their deaths, ruled no empires, took little part in history-making decisions. A few of them achieved renown, but none was ever a national hero; a few were roundly abused, but none was ever quite a national villain. Yet what they did was more decisive for history than many acts of statemen who basked in brighter glory, often more profoundly disturbing than the shuttling of armies back and forth across frontiers, more powerful for good and bad than the edicts of kings and legislatures. It was this: they shaped and swayed men’s minds….And because he who enlists a man’s mind wields a power even greater than the sword or the sceptre, these men shaped and swayed the world. Few of them ever lifted a finger in action; they worked, in the main, as scholars-quietly, inconspicuously, and without much regard for what the world had to say about them. But they left in their train shattered empires and exploded continents; they buttressed and undermined political regimes; they set class against class and even nation against nation-not because they plotted mischief, but because of the extraordinary power of their ideas.”

So brace yourself and accept the challenge of studying economics.

Check out the Bachelor in Business Administration degree specialising in Economics & Management at Wittenborg University of Applied Sciences at:

WUP 22/1/2022

by Hanna Abdelwahab

©WUAS Press

Why study Economics?, Department of Economics, University of Otago, New Zealand

Economics – a window on the world

Study Economics at Otago and learn about economic theory, develop your skills of logical thinking – and pick up some great interpersonal skills along the way!

Choice is at the heart of all decision-making. Individuals, businesses and governments are all faced with making choices in situations where resources are scarce. This is where a knowledge of Economics is vital.

Economics applies to most aspects of everyday life. By studying Economics you will examine topics of obvious importance to human well-being. Economics is applicable in a wide range of fields, including:

Business

Finance

Administration

Law

Local and national government

Increasingly, policy debate in all areas is being cast in economic terms. Understanding most current issues requires knowledge of Economics.

Economics provides a valuable set of intellectual skills

Economics is more than just a subject – it’s a way of thinking. It provides a logical way of looking at a variety of issues.

Practise the analytical techniques employed in Economics and learn to develop your:

General literacy

Communication and numeracy skills

Skills of abstraction (balancing simplification against relevance)

Skills of logical deduction

Critical thinking

Studying Economics provides insights into:

the general environment of resource allocation decisions

opportunity costs and trade-offs

project evaluation and government policy

These are crucially important in many areas. Often these insights are not obvious, and can be counter-intuitive to those who don't apply economic reasoning.

Economics graduates make great employees

In today’s working world, transferable skills and flexibility, together with strong personal characteristics, tend to be more important than specific training in a narrow, vocational area. Employers are particularly keen on graduates with good analytical and problem-solving skills. Training in Economics emphasises these skills.

Employment opportunities are diverse

The wide range of skills developed through studying Economics (especially to degree or Honours level) opens up many, diverse career opportunities for graduates.

There is sometimes a mistaken perception that employment prospects for Economics graduates are not as favourable as for graduates from other Commerce areas. In fact, although Economics does not provide ‘vocational training’ in the same way as some other Commerce disciplines, Economics graduates enjoy similar employment rates as students of other Commerce degrees.

According to the latest data from the Ministry of Education, people who graduate with an Economics degree, on average, earn 173% of the national median earnings five years after graduating, while 73% are employed, and another 15% are undertaking further study.

Take a look at this infographic about how Economics compares with other subjects on a variety of dimensions (PDF 947KB).

Where are our graduates headed?

In recent years Otago Economics graduates have found employment in a tremendously wide range of niches, both in the private and public sectors.

Many of our graduates can be found working in these areas: