Why economics is very important? Top five reasons to study economics:

WHY IS ECONOMICS VERY IMPORTANT?

In today's world economy has become an extremely useful subject and has acquired great importance in the last few decades. Economics is very important in society because everyone faces market problems and personal finance. To deal with this problem we will discuss what economists believe about problems of daily life and the reasons why we should study economics.

WHAT IS ECONOMIC?

 Economics, at its very heart, is the study of people. It seeks to explain what drives human behavior, decisions, and reactions when faced with difficulties or successes. Economics is a discipline that combines politics, sociology, psychology, and history.

When you study economics you gain a toolkit of skills, approaches, and ways of thinking that you can apply to a wide range of problems. Economics is one of the central disciplines underpinning the study of business and management and public policy.

USEFULNESS OF ECONOMICS

Economics has become an extremely useful subject and has acquired great importance in the last few decades. The economic problem has begun to exercise the minds of people and this probably explains the growing importance of economics.

ECONOMIC PROBLEMS

Economics deals with problems and questions affecting individuals and families, for example, the type of jobs that are available, the level of wages in industries, the effect of rising prices on the standard of living of the people, and so on.

•  why should wages rise at a slower rate than the rise in prices?
•   Why is it that the traders are happy when prices are rising, while the consumer feels unhappy? 

A study of economics will help us to understand these specific questions and problems, which affect individuals and households.

Again economics studies those problems and questions which affect society and the state as a whole and suggests suitable solutions for them. for instance,

• Why should unemployment increase to dangerous proportions in some periods?
• What measures were adopted to reduce and remove it?
• How much should each one of us contribute by way of taxes to the government to enable it to provide employment to those without jobs?
• What is the cause of the pressing problem of inflation?
• What is the relation between excessive government expenditure and a rise in prices?

These are important questions that affect the entire society and all of us are interested in finding proper solutions for them.

THE FIVE REASONS WHY WE STUDY ECONOMICS?

1. Economics studies the actions and behaviors of businessmen, investors, and speculators under different circumstances.

1. It studies the causes and follows the vicissitudes of business and economic activity, 

1. The fluctuations in the prices of shares and bonds, the effect of momentary and government measures, production and employment, and so on.

1. The study of economics will, therefore, help us to understand business trends.

1. The factors which affect them and the policies followed by the government to change and modify them.

Nowadays, economic consideration plays a significant role in local, national, and international affairs. Let us take, for example, the problem of providing water, electricity, underground sewerage, compulsory for all children, and so on. These problems raise various economic issues.

• How much money is required for each of these purposes? 

• How will the funds be raised by the public authorities?

Or let us consider such national problems as the rise in prices in India, the economic development under the five years plans for which huge amounts of money are being spent, the enormous increase in taxes, and so on.

Finally, economics is actively engaged In studying the causes of poverty with a view to suggesting an effective method of removing it. 

Poverty has been a curse of human existence. It has forced millions of people to go hungry. It has denied children food, clothing, and education. For centuries, men have been told to reconcile themselves to their poverty and misery. But this state of affairs cannot continue anymore.

 Countries have to grow and develop, but there has to be a better distribution of income and wealth as well. Economics has the noble objective of finding out the methods of removing poverty and misery. 

It is probably the reason which has made economics one of the most important and useful of social sciences, particularly for a country like India which is starving and hard to abolish poverty and misery by combining the ideal of "Growth with justice".

Tell me in a comment how much you understand the economy and how it will change your life. If this article is useful for you then share it with your friends and family and help each other.