Economics | intro, importance, conclusion |

Importance of studying economics

Introduction:-

            Economics is one of the most useful branches of knowledge. It is a social science which studies human behavior and attitude. It directly and indirectly aims to increase human welfare.People all over the world and especially living in the third world countries have realized that the study of economics can provide solutions of their economics, social and political problems. Following are the some importance points which show the importance of studying economics.

EDUCATIONAL/ THEORETICAL IMPORTANCE:-

            Following are the main points of theoretical importance of studying economics.

1.     Economics increase our mental capacity:-

            The study of economics increase our mental capacity to understand the economic reality of life e.g. usefulness of saving and investment in the economy.

2.     Creates sense of responsibility:-

Economics creates sense of responsibility in citizens about the utilization of limited resources in a best suitable way.

3.     Provide useful information:-

             Economics provide very useful and value able information on matters on matters related to daily life. A person cannot be called educated unless he has some information about economic events taking place around him.

4.     To understand different economics systems:-

Economics help us to better understanding about different economics system prevailing in the world like capitalism, socialism, mixed economy, Islamic economic system etc.

5.     Helpful for other subjects:-

            Knowledge of economics is also helpful to understand different subjects like political science, history, sociology etc.

PARACTICAL IMPORTANCE:-

            Following are the points of practical importance of studying economics.

1.     Solution of economics problems:-

            Now a days, every country is facing different economics problems like inflation, depression, unemployment, low level of investment , poverty etc. First we identify the economics problems and then give suggestions for removing these economics problems.

2.     Fair distribution of wealth:-

            Unequal distribution of wealth is the major problem in capitalist’s economy, due to this rich become richer and poor become poorer. by studying economics, we are trying to make fair distribution of wealth.

3.     Economics development:-

All third world countries are poor and less developed. By making appropriate economics planning, they can develop their countries.

4.     Optimum utilization of limited resources:-

            Wastage of limited resources is the main reason of poverty and less development in third world courtiers. By studying economics we are able to make best utilization of available resources.

5.     Guidance for finance minister:-

            Economics provide guidance to finance minister at the time of making budget, and imposition of different taxes.

6.     Importance for politicians/ social reformers:-

Many political and social problems arise due to different economic reasons, rapid increase in prices, low wages, unemployment, concentration of wealth in few hands may bring political unrest in the country. Politicians, social reformers and even religious leaders therefore have better chances of success if they are well aware of some current economic theories.

7.     Guidance for labour (employee) and employer:-

            Study of economics is very useful for both labour and management. Labourer come to know their importance in production process and tries to increase its efficiency and productivity. Employers also realize that by providing more facilities, they can raise productivity and efficiency of labour.

8.     Guidance for consumers:-

            Every consumers has unlimited wants and limited resources, and its objectives is to maximize utility. Study of economics helps him to achieve maximum utility or satisfaction within limited income.

9.     Helpful for voters:-

            Economics is very helpful for voters at the time of casting their votes. They poll their votes in favour of those candidates who have deep understanding about economics and after selection they can solve their economic and social problems successfully.

10.            Importance for common citizens:-

            A basic understanding of economics is essential to become well informed citizens. Only then they will be in a better position to understand the benefits or harms of a government projects.

11.            Helpful for Economics planning:-

            Most of the economics problem like unemployment, over population, unequal distribution of wealth cannot be solved without economic planning. The study of economics is necessary for economic planning.

12.            Correcting the balance of payment:-

            The study of economics is helpful for adopting the methods of correcting the unfavorable balance of payment of a country.

Conclusion: -   The above mentioned points proved that the economics is an important and very useful subject. It is very helpful to improve living standard of people all over the world and particularly living in the developing countries.