Economics combines elements of social interactions with science, and therefore it is a part of social science. We are surrounded by Economics. We all make economic decisions each day, sometimes without even knowing it.
As against the general perception, Economics is not just confined to money or financial matters. It is a very broad term including many aspects of life. From unemployment, development, growth, and poverty to demand and supply and price determination, all fall under the purview of economics.
Economics as a Subject
Economics deals with decisions related to production, consumption, and distribution of goods and services. It the study of the scarcity of resources and everyday choices that we make.
To understand more about Economics, let us understand the different types of Economics and its uses in everyday life.
Types of Economics
Economics varies from the study of one of a few units to the study of a large number of units. It is broadly categorized into two main categories: microeconomics and macroeconomics.
The term Micro emerged from the Greek word mikro, meaning small. It is the study of individual firms and consumers, and about how individual actors make decisions. This subfield of economics has to do with Supply and Demand. It describes the way, demand and supply interact in various markets and determine the price.
Microeconomics makes it clear that how our choices affect the economy. With the study of this subject, you could easily understand the real-life market situation. It will help you understand how prices of goods and determined, how consumers decide what to consume, how producers decide how much to produce, and so on.
It is another major sub-field of Economics. The branch of economics that studies the overall economy or the economy as a whole. It describes the market system behavior on a large scale. It studies the overall economy-wide phenomenon.
To add to that- the rate of economic growth, National Income, Gross Domestic Product (GDP), changes in unemployment, and likewise is studied under macroeconomics. It focuses on aggregate or overall changes in the economy.
Economics in everyday life
Everyone is affected in some way or the other by economics as economics is all around us. For instance, mass unemployment or too much inflation impacts society giving rise to make new or amend existing policies. The policies are being studied in economics and the policymakers are well versed with economic concepts.
Inflation, unemployment, economic growth are the buzzwords that we hear now and then. These are some of the macroeconomic trends that relate to our everyday lives.
We are faced with choices in our daily lives. When choosing option 1, we sometimes have to let go of option 2. This study of making choices whether from consumers’ or producers’ point of view is also studied under economics. The study of choice and preference is the guiding principle in making consumption, production, and distribution decisions in the economy.
Given all that has been said, economics affects our daily lives in subtle ways and in most obvious ways too.
Benefits of Studying Economics
Economics helps people to understand the world around them. It helps us understand the business, markets, and people around us. It enables us to respond better at the time of opportunities and problems in the economy.
In an ever-changing world, Economics would be a great choice. It enables us to understand the ongoing economic situations better and adjust our consumption, savings, investment decisions accordingly.
It would help in a variety of career paths. Economics enhances your problem-solving and analytical skills. One could pursue a career in law, finance, public administration, politics, entrepreneurship, journalism, and many such vast options.
Economics imparts clear, logical thinking and reasoning as well. It would help you do well professionally and personally as well. Studying economics can be a valuable complement to most of the other subjects. It would help enhance the value of other subjects.
What is the career scope of Economics?
Economics is an evergreen subject. It has a high demand at both the national and universal levels. Job opportunities have increased because of globalization. The career scope is enhanced multiple times due to the study of various concepts within it. This establishes a bright career in the banking sector, trade, commerce, public services, insurance, and so on.
What job opportunities are available in India after pursuing higher education in Economics?
After completing an MA in Economics, a candidate can take a corporate or public sector job. They can also either pursue a Ph.D. or appear for the University Grants Commission (UGC) test in India. More job opportunities in every sector are available to Ph.D. holders. And by qualifying the UGC test, you can become eligible for the post of Assistant Professor.
Many other job opportunities are available for students of Economics such as:
•Lectureship and Teaching
•Indian Economic Services
What type of skills are required to pursue a career in Economics?
To achieve a successful career in Economics, you require the following skills:
Knowledge of Mathematics
Awareness about current affairs
Good communication skills
What kind of math is used in Economics?
Primary algebra, calculus, statistics, and probability are some of the subheads of maths used in economics.