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As economics professors, we are often asked what economics is and why people should study it. Economics is a social science that examines how societies allocate limited resources to produce, distribute and consume goods and services; how creativity and innovation affect economic progress; and how prices affect markets and people’s decisions.
Many people think economics is just about dollars and cents. However, it is much broader than that. Economics includes topics as diverse as games, agriculture, health, crime, taxes, inflation, commodities, pollution, the environment, politics, social programs, poverty, wealth, human behavior, property rights, economic growth, history, business and data analytics, governance, marketing, philosophy, war and peace.
Studying economics provides 1) a broad range of high-paying career opportunities, 2) a better understanding of world, state and local events, and 3) improved thinking and analytical skills that are valuable for making better business and financial decisions.
Economics majors have some of the highest earnings of all college majors. Economics majors and minors go into fields as diverse as finance, banking, marketing, accounting, insurance, government, diplomacy, law, management, consulting, scientific research, entrepreneurship, intelligence, and business and data analytics. Economics is a common path to law school. Economics majors have the highest scores on law school admission tests of the 16 largest disciplines. Economics is also a pathway to other graduate degrees, such as an MBA, a doctorate or even medical school.
Studying economics helps people understand crucial concepts such as prices, how markets work, how to make rational tradeoffs, and why specialization is essential to wealth. It also gives insights into inflation, unemployment, economic growth, income inequality, poverty, environmental issues and globalization. Economic knowledge helps one make better personal, career and business decisions. It also teaches us to look for unintended consequences, incentives and tradeoffs. Economics students sharpen their skills in analytical and critical thinking and data evaluation. It teaches how to identify relationships and construct logical arguments. Employers seek these skills in a wide range of fields.
However, economics is not for everyone. Many students find economics more challenging than other subjects, and many do not understand it even after taking it in high school. Nevertheless, students willing to take on the challenge of economics find it fascinating and that it opens doors to many career opportunities. Economics is among the broadest, best-paying and most exciting subjects students can choose. It is an interesting area of study that offers a comprehensive way of thinking.•
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Bohanon and Horowitz are professors of economics at Ball State University. Send comments to ibjedit@ibj.com.
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