Importance of the study of economics
Or, Why do we study economics?
The knowledge of economics is essential for all classes of the people in our society. From top to bottom, we should know more or less the concepts of economics. Otherwise, our way of life will be so difficult. We have to be loser at every step or our life without the concepts of economics.
1. Economic problems of the society
Most of the problems of the, society are related to the economic matters. The economic problems of our life are: i) poverty ii) unemployment iii) price uprising of essential goods v) food deficit v) rapid increasing of population vi) illiteracy vii) low per capita income viii) low standard of living
These all arc economic problems in our society. Economics analyzes the problems and side by side shows the way to solve the problems.
2. Unlimited wants of our Life
We have unlimited wants and limited resources. The people carry on efforts to meet up the unlimited wants by limited resources. They can know the strategies to meet their daily needs by the study of economics.
In our daily life we have to be frugal or economical. Otherwise our life will be difficult to survive in the society. Economics teaches us to be frugal or economical.
4. Proper utilization of resources
Economics shows the way of proper utilization of resources. Flow to produce the maximum production by using the limited resources. Which goods are to be produced’? What amount to be produced? 1-low to produce? What technology to be used for production’? Where to sell and buy?
5. Businessmen, traders and industrialists
The knowledge of economics is so important for businessmen, traders and industrialists. They have to keep the ideas of
i) market demand of produced goods
ii) changes in demand in future
iii) banking system
iv) monetary market
v) share market, etc.
It is not possible to gain in politics for politicians without the general knowledge of economics. A politician, who wants to be an efficient in their works, must have the knowledge about the:
i) agricultural policy
ii) industrial policy
iii) trade and commerce policy
iv) tax policy
v) Income-distribution policy.
If someone wants to be an efficient politician, he or she has to know these economic concepts.
7. Government administration
The concepts of economics are needed for government administrators in
i) budget preparation and its implementation
ii) tax imposing and withdrawing
iii) government expenditure reducing and increasing
iv) export and import
v) balance of trade
Economist Bolding says that economics brings in a man intellectual discipline.