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Advantages and Disadvantages of Studying Economics

Last Updated on May 26, 2024 by Team College Learners

Economics is a field that delves into the intricate workings of how individuals, businesses, and governments make decisions in the face of scarcity. It involves analyzing data, evaluating alternatives, and forecasting future trends to make informed choices. Economists are tasked with developing critical-thinking and problem-solving skills to navigate the complexities of the modern world. However, they also need to be comfortable working with data limitations and uncertainties, as the future is often unpredictable.

Economics is a fascinating field of study. Although it is said that learning economics can be a turn-off for students, some make it their career choice because of the money and the job prospects. As a math student myself, I would personally say that studying economics can be challenging but the benefits are worth it. The arithmetic used in economics is not very complicated, but it’s best if you have an understanding of basic accounting principles first before starting with any finance or econometrics classes.

In order to pursue a degree in Economics, prospective students typically need to meet certain admission requirements set forth by universities. These requirements may include a strong background in mathematics, statistics, and other related subjects, as well as a demonstrated ability to think analytically and critically. Additionally, some universities may require applicants to submit letters of recommendation, academic transcripts, and standardized test scores, such as the SAT or ACT.

The admission process for universities offering programs in Economics typically involves submitting an online application, along with all required documentation, by the specified deadline. The admissions committee will review the applications and make decisions based on the applicant’s academic record, test scores, extracurricular activities, letters of recommendation, and personal statement. Once accepted, students will have the opportunity to further develop their analytical skills and knowledge of economic principles through coursework, research opportunities, and real-world experiences.

 

 

 

Pros And Cons of Economics

Economics is a subject that helps people comprehend the world around them. It allows people to better understand people, businesses, markets, and governments, allowing them to respond more effectively to the challenges and opportunities that arise as things change. Economics majors are well-positioned in an ever-changing world because they possess problem-solving and analytical skills that enable them to succeed in a wide range of careers, including law, risk management, actuary, finance, foreign affairs, public administration, politics, policy analysis, health administration, entrepreneurship, market analysis, journalism, and unknown future careers.

Economics is the study of how people decide to use resources on an individual and a collective basis, but before you commit yourself to spending time and effort studying economics, it helps to know the advantages and disadvantages of doing so.

The word “economy” comes from a Greek word that means “to control.” Economics is a term that refers to trading in micro and macroeconomics, as well as banking and other monetary institutions that are wholly or partially founded on economics. Individuals can gain knowledge of trading concepts and market value specifics by studying economics. In the last decade, the study margin of economics students has risen significantly.

The pouring job opportunities and expansion of markets and trading centers has led to better quality of economics studies. Economics is a susceptible matter which is taught in the curriculum of high schools. With enlargement of economics, the subject is also aimed to determine the production, consumption and conveyance/relocating of products and services.

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.

SIMPLE TERMS) Advantages & Disadvantages of Economic Growth | My Study  Revision Blog

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.

what are the 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.

Pros & Cons of an Economist Career

Economists study economic issues such as supply and demand, savings and investments and international trade. Through extensive research and analysis, they interpret and predict market trends, and then advise or make recommendations to individuals, companies and governments. As with any job, there are advantages and disadvantages to pursuing a career as an economist.

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.

Merits and Demerits of Economic Development

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.

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.

Choice of Directions

Economics students can concentrate in a variety of subjects. Economists examine economic events, while microeconomists evaluate how markets work, according to the American Economic Association. Behavioral economists also study how cognitive and emotional variables influence economic decisions. Macroeconomists look at the entire economy, whereas international economists look at commerce between countries. Other economists include financial economists who research saving and investing, as well as public finance economists who study the role of governments in the economy.

Advantages and Disadvantages of Being an Economist

An economist is someone who studies economic issues such as supply and demand, savings and investments, and international trade. In general, the term economist is applied to a person who has a PhD in economics, teaches economic science, and has written in a field of economics.

Being an Economist

Being an Economist. What does an Economist Do?

Economists conduct research and apply economic analysis to the ways society uses resources like land and other raw materials to produce goods and services. Their research could focus on topics like energy costs, inflation, interest rates, farm prices, rents, imports, or employment.

Additionally, economists study and monitor historic trends to make forecasts on a wide variety of issues, including energy costs, inflation, interest rates, exchange rates, business cycles, taxes, and employment levels, among others.

Economists develop various methods for obtaining the data they need. Sampling and statistical techniques may be used to conduct surveys and to develop forecasts. An integral part of an economist’s job is preparing reports, including tables and charts, on research results. Economists also write articles for publication in newsletters and academic journals.

It is up to economists to present economic and statistical concepts in a clear and meaningful way for those who do not have a background in economics. Governments, businesses, and other individuals fully rely on economists to design policies and make recommendations to solve economic problems.

History of Economists

Since Economics is the science of how goods and services are produced and consumed, its history dates back to the time when trading first began in the world. However, Adam Smith(1723-1790), Scottish social philosopher and political economist is regarded as The Father of Economics. He used the ideas of French writers and expanded it into a thesis on how economies should work.

Since then, several influential economists like John Maynard Keynes, F.A. Hayek, Milton Friedman, Lawrence Robert Klein, Carmen Reinhart among others have contributed significantly to the field of economics.

Advantages and Disadvantages of Being an Economist

As with any job, there are ups and downs to pursuing a career as an economist. Let’s take a look.

benefits 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.

Disadvantages of Being an Economist

Being an economist isn’t just about high pay and social prestige. There are some downsides to being one. Let’s take a look at some of them.

1. 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.

2. More Maths

While you are learning about people and how they function economically, maths still plays a huge role in economics. You have to learn advanced formulas so this career is not for those who don’t like math.

3. 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.

4. 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.

Conclusion

Being an economist is more than just analyzing numbers. You require strong problem solving as well as complex research skills. You should be clear and concise while communicating because otherwise, you might not get the credit you deserve.

According to economists, the ongoing global epidemic COVID-19 will inevitably result in a severe economic collapse. While nations and international organizations prepare for recovery, economists will play a key role in the global economy’s revival. Even the tiniest of their errors might have far-reaching, long-term consequences for economies around the world, particularly during crises like COVID-19.

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