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Importance of the Study of Economics:

 

The importance and utility of the subject of Economics can be judged from this fact that it is now considered to be one of the most important and useful subject as compared to any other branch of knowledge. The reasons for gaining its importance are that it makes human welfare its direct and primary concern.

 

It helps in raising the quality of economic life. As it greatly helps in the solution of economic and. social problems so it exercises an over-whelming influence on the minds of the people. In the words of Durbin:

 

“Economics is the intellectual religion of the day”.

 

About the importance of Economics Malthus remarks:

 

“Political economy is perhaps the only science of which it may be said that the ignorance of it is not merely a deviation of good but produces great positive evil”.

 

Edmund Burks is not wrong in saying that:

 

“The age of chivalry has gone, that of sophistry, economists, and calculators has succeeded”.

 

Advantages of the Study of Economics:

 

The advantages of the study of economics are as under:


(1) Intellectual Value: The knowledge of Economics is very useful as it broadens our outlook, sharpens our intellect, and inculcates in us the habit of balanced thinking. The study of Economics makes us realize that we as human beings are dependent upon one another for our daily needs. This feeling creates in us the intelligent appreciation of our position and the spirit of co-operation with others.

 

(2) Practical Advantages: The practical advantages of Economics are much more important than its theoretical advantages. These advantages can be looked at from the individual and community point of view.


(3) Personal Stake in Economics: From personal point of view, the study of Economics is useful as it enables each of us to understand better and appreciate more intelligently the nature and significance of our money earning and money spending activities. With the knowledge of Economics, the consumer can better adjust his expenditure to his income. The study of Economics is also useful to a producer. It suggests him the ways of bringing about the most economical combinations of the various factors of production at his disposal. It also helps in solving the various intricacies of exchange. From the study of Economics, one can easily judge as to why the prices have risen or fallen. The knowledge of Economics also explains us as to how the reward of various factors of production is determined. Thus, we find that every’ individual can rightly hope to become a better and more efficient consumer, producer and businessman, if he has the working knowledge of economics.


(4) Economics for the Leader: The study of economics is not only helpful from the individual point of view but it is also very useful for the welfare of the community. It enables a statesman to understand and better grasp the economic and social problems facing the country. Every government has to tackle different kinds of economic problems such as unemployment, inflation, over production, under-production, imposition of tariffs and control, problem of monopolies, etc. the statesman can successfully solve these problems, if he has thorough knowledge of the subject of Economics. The knowledge of Economics for a finance minister is also indispensable. He has to raise revenue by imposing taxes on the incomes of the people for meeting the necessary expenditure of the government. Economics here comes to his rescue and guides him as to how the taxes could be levied and collected.


(5) Poverty and Development: The greatest advantage of Economics is that it helps in removing traces of poverty from the country. Take the case of Pakistan; we in Pakistan are confronted with different kinds of problems. For example, low-per capita income, low productivity of agriculture, slow development of industries, fast increase in population, under-developed means of communication and transport, etc. The study of Economics helps in devising ways and means and suggesting practical measures in solving these problems.


(6) Economics for the citizen: Such being, the importance of study of Economics, it is rightly remarked by Wooten that “you cannot be in real sense a citizen unless you are also in some degree an economist”. He is perfectly right in giving the statement. The world is so fast changing that we are completely now living in a world dominated by economic forces and economic ideas. If the people of any country do not have the working knowledge of an economic system; then the government of that  country can easily hoodwink citizens have knowledge of Economics, then the government will be very vigilant and spend the money in a wise manner.

 

The importance of the study of Economies can also be judged from this fact that the daily newspapers cannot be understood without some knowledge of Economics. The newspapers often describe complicated economic problems such as inflation, balance of payment, balance of trade, imperfect markets, dumping, co-operative farming, sub-division and fragmentation of holdings, mechanization of agriculture, If you do not have working knowledge of Economics, you cannot understand these diverse problems.


From brief discussion, we conclude, that the knowledge of Economics is very useful. As such it is necessary that every citizen, worker, administrator, consumer, etc., should have at least working knowledge of it. In the words of Sir Henry Clay:

 

“Some study of Economics is at one a practical necessity and a normal obligation”.

Relevant Articles:

» Economics as a Science of Wealth or Definition of Economics By Adam Smith
» Economics as a Science of Material Welfare or Definition of Economics By Alfred Marshall
» Economics as a Science of Scarcity and Choice or Definition of Economics By Robbins
» Economics as a Science of Growth and Efficiency or Definition of Economics By Modern Economists
» Is Economics Neutral Between Ends
» Economics Problems
» Scope of Economics
» Nature of Economic Laws
» Methods of Economic Analysis
» Economic Analysis and Economic Policy
» Micro and Macro Analysis
» Importance of the Study of Economics
 

 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance
History of Money

 

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