Advantages And Disadvantages Of Studying Economics

Economics can be a great subject to study and here we will look at ​the Advantages and Disadvantages of studying economics, as well as the importance of studying economic development. 

Studying Economics is an absolutely fantastic choice for those who want to become successful in the future. By taking the elements of political science, mathematics, statistics and other social science, economics provides you with the skills needed to make educated decisions about global economy, business and finance. Economics are also very important for our country and the government.

You may find it hard to access the right information on the internet, so we are here to help you in the following article, providing the best and updated information on You will also find related posts on Advantages And Disadvantages Of Studying Economics. Read on to learn more. We at infolearners have all the information that you need about Advantages And Disadvantages Of Studying Economics.

Advantages And Disadvantages Of Studying Economics

Studying economics can be a great choice for many reasons, and it is no wonder that it is such a popular field of study. It is extremely useful to be able to understand the economy, even if you are not an economist. However, studying economics does have its downsides as well. Before you decide whether or not you want to study economics, it’s important to know both the advantages and disadvantages of doing so.

The first advantage of studying economics is that it can help you make better decisions in your life. When you understand how economics work, then you will be able to understand why certain things happen in the world around us. You will also be able to figure out which choices are best for your life in general. For example, if there is an economic downturn, then it may not be wise to buy a house right now because houses may not sell at their normal rate of return when there is less demand for them. This means that by understanding how this works, you can save yourself money on buying something that won’t sell as well later on down the line.

Another advantage of studying economics is that it can help you get a job after graduating from college as an economist or some other related field of study.

Advantages of studying Economics

Jobs Available in Multiple Industries

Economists can choose to work in a wide range of industries like government, management, research, etc. Since economists are required in almost every filed related to monetary transactions, there is a high demand in a diverse range of jobs.

Nice Dividends

Economists made an annual mean wage of $99,480 according to May 2012 salary data from the BLS; this falls in the middle of wages paid for similar careers. Economists made more than market research analysts, statisticians and financial analysts, who earned $67,380; $79,570; and $89,410, respectively. However, actuaries made $106,680, while political scientists earned $104,600.

Numerous Applications

Studying economics prepares you to deal with issues in a variety of fields, including business, law, politics, history and accounting. Knowing how scarcity affects purchasing decisions helps in a politician’s office, for instance, where people consider changes in taxation. It also helps in a department store where executives determine how much profit they might make from a certain product.

Critical and Independent Thinking

Critical thinking is particularly important in today’s era of the internet filled with information overload and fake news. And economists are critical thinkers. They will always be sceptical of facts. Their independent thinking allows them to undergo their analysis.

Choice of Directions

Economics can choose from a broad range of specialized fields. According to the American Economic Association, econometricians study economic phenomena, while microeconomists evaluate how markets function. Also, behavioral economists observe how economic decisions are affected by cognitive and emotional factors. Macroeconomists study the total activity affecting the economy, while international economists analyze trade between nations. Other types of economists include financial economists who study saving and investing, while public finance economists analyze the role of governments in the economic process.

Current Events

Economic changes often occur, such as a decrease in unemployment, an upswing in the stock market or a trend of jobs being outsourced to other countries. During these changes, you can better understand the events as they happen by participating in classroom discussions. When the government announces a change in policy, such as a hiring freeze for federal workers, you’ll have the advantage of being part of a group of curious people asking questions about current events and how they apply to your curriculum.

Several Specializations

Within the economics major, students can choose from a broad range of specialized fields. Some possible specializations include economic statistics, environmental economics, applied microeconomics, and economics of education, among others.

Prestige

Earning an economics degree also earns you prestige. People who successfully study economics must operate at a high intellectual level. Because of its importance in society, economics is a social science for which you can earn a Nobel Prize. This puts it alongside other disciplines that offer awards such as chemistry and physics.

Social Tools

These days, influential people talk a lot about economics. You need at least some economic knowledge to be in their social circle. These prominent businessmen or influential politicians talk about economics, interest rates, oil price, etc all the time.

Understanding of the Market Economy

Being an economist makes you understand how a market operates. Understanding the market economy is realizing how demands are created (natural or human-made) and how businesses play the role of fulfilling those demands by offering or supplying those needs.

Social Influence

People from all walks of life will respect you if you are an experienced & knowledgeable Economist. Be it a small office or huge international gatherings and political campaigns, economists play a great role. Some economists even have the power to manipulate the current economic issues to their interests.

Disadvantages of economics

More Years of Math

The educational requirement to be an economist, at the very least, is a bachelor’s degree in economics. Most jobs, though, require several additional years in school to complete either a master’s degree or a Ph.D. in economics. Also, this career is not for those who don’t like math, since statistics, calculus and other advanced math subjects are used to perform economic analyses. Economists must also be detail-oriented and analytical, and they need excellent oral and written skills to explain and present their findings.

 Strong Job Competition

There is strong job competition for economists out there. There is always a chance that someone better than you in terms of degrees or soft skills could get the job. Most positions require a master’s or doctoral degree. So, you have to groom yourself enough and face the competition.

Not the Best Forecast

Job opportunities for economists are only projected to grow by 6 percent through 2020, according to the U.S. Bureau of Labor Statistics. Since the national growth rate for all U.S. occupations is 14 percent, demand for economists is growing much slower than average. As a point of comparison with similar occupations, demand for market research analysts is projected to grow by 41 percent through 2020, while jobs for actuaries will grow by 27 percent, and financial analyst jobs will increase by 23 percent. However, statisticians will experience a 14 percent increase in demand for their services, while political scientists will see an 8 percent increase in job growth.

Wrong Decisions and Arguments

Sometimes, economists make mistakes which leads to wrong decisions. This might cost a large sum to those who are seeking their advice. Besides, economists have a sophisticated view regarding any issue which may be completely different from how an ordinary person perceives which leads to never-ending arguments. The worst-case scenario is a debate with another economist.

Tendency to Overthink

Economists can sometimes be prone to think too theoretically that too more than necessary. Their overthinking nature leads to simple issues being twisted. This could even lead to not having enough sleep.

what are the advantages of studying economics?

Economists are assets to society given their high ability to influence the standard of living of an average man on the street. Their importance is undeniable. Let’s break down a few of the advantages of being an economist

1. Critical and Independent Thinking

Critical thinking is particularly important in today’s era of the internet filled with information overload and fake news. And economists are critical thinkers. They will always be sceptical of facts. Their independent thinking allows them to undergo their analysis.

2. Jobs Available in Multiple Industries

Economists can choose to work in a wide range of industries like government, management, research, etc. Since economists are required in almost every filed related to monetary transactions, there is a high demand in a diverse range of jobs.

3. Several Specializations

Within the economics major, students can choose from a broad range of specialized fields. Some possible specializations include economic statistics, environmental economics, applied microeconomics, and economics of education, among others.

4. Good Pay

Economists have a higher average salary than most others. Since economics majors provide a valuable service and people are willing to pay a little extra for it. According to the BLS, economics professors earned an average of $114,820 per year in 2017, while economists earned an average of $112,650.

5. Social Tools

These days, influential people talk a lot about economics. You need at least some economic knowledge to be in their social circle. These prominent businessmen or influential politicians talk about economics, interest rates, oil price, etc all the time.

6. Social Influence

People from all walks of life will respect you if you are an experienced & knowledgeable Economist. Be it a small office or huge international gatherings and political campaigns, economists play a great role. Some economists even have the power to manipulate the current economic issues to their interests.

7. Understanding of the Market Economy

Being an economist makes you understand how a market operates. Understanding the market economy is realizing how demands are created (natural or human-made) and how businesses play the role of fulfilling those demands by offering or supplying those needs.

cons of economics

Economics is a social science that examines how people produce, distribute, and consume goods and services. This means that much of the field is based on human behavior, which can be somewhat irrational and unpredictable. For this reason, it’s a science with certain inherent limitations that prevent its practitioner – economists, that is – from being able to predict markets’ performance accurately and know exactly how certain policies will affect different sectors and economies.

Also, the field of economics suffers from the problem of non-replicability. It is impossible to precisely recreate market conditions or predict an outcome based on how markets have behaved in the past under similar circumstances. Unlike the hard sciences, where researchers are able to isolate certain variables and figure out direct relationships between cause and effect, there is no way to isolate any variable in the world of economics completely. The markets are simply too large, too intertwined and too influenced by human behavior to act in any way that is 100% predictable. In fact, there are so many variables involved that it is even impossible to identify all the factors in play in the first place.

The limitations of economics become especially problematic in normative economics, which involves recommendations about how things ought to be and what types of policies a government should implement in order to improve a nation’s economy. Different economists come to completely different conclusions about what kind of regulations and controls should be applied to various markets and exactly what outcomes will result. While they can point to data, historical precedence, and other facts to support their arguments, there is no way to guarantee that they are right.

Because the field of economics cannot provide concrete conclusions, it is susceptible to criticism from a variety of sources, as is the case with political economics. Politicians often use normative economics to argue for certain policy changes that support their own agendas. They present their beliefs and hypotheses to the public as irrefutable facts when, in actuality, there is no way to verify the validity of their ideas, except to put them into practice and evaluate the results.

Economics was born out of the idea that human beings could study the nature of wealth in order to better the world, but it is a problematic area of inquiry. While positive economics can help people understand what is currently happening, it is much more difficult to use similar modes of thinking to predict the future and influence policies to ensure overall improvements. Even longstanding theories that are considered essential aspects of economics sometimes contradict one another. Ultimately, economists have to choose to subscribe to a particular school of thought that best aligns with their beliefs. These opposing viewpoints can cause controversies and only add to the limitations of economics in actually solving financial problems.

importance of studying economic development

One of the most striking characteristics of the world economy in recent decades has been the growing inequality in the distribution of resources between different parts of the world. China, the most populous country in the world, has experienced economic growth at an unprecedented rate, and India has also made substantial progress. Meanwhile, countries in sub-Saharan Africa have stagnated, and the gap in living standards continues to widen.

Development economics attempts to explore some of the economic challenges peculiar to some of the poorest countries in the world. In this module you will investigate the factors that have led to this global inequality.

As part of this study programme, you will see the way in which economics can help our understanding of some of the major challenges of the 21st century, including:

  • to what extent does rapid population growth help or hinder development?
  • is it necessary for economies to go through a process of structural transformation – and how does this take place?
  • what is the role of education and health care provision in contributing to the process of development?
  • how important is it for countries to engage in international trade in the context of a globalising economy?
  • how can less-developed countries achieve sustainable development?
  • what effect has the HIV/AIDS epidemic had on economic and human development?

By studying development economics, you will have the opportunity to apply the tools of economic analysis to the problems and challenges facing less-developed countries, and to begin to understand why some countries have been able to go through a process of economic and human development whilst others have languished.

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