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Why I Want to Study Economics

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7 Reasons Why You Should Study Economics

• 30 Nov 2017

An economics course can teach you the fundamentals needed to decipher graphs and other important financial data, as well as the tools to develop a successful business strategy.

But how can you know if studying economics is right for you? Consider the possible outcomes of various economics programs and how they compare to your personal and professional goals.

What Is Economics?

At its core, economics is the study of how individuals, groups, and nations manage and use resources.

Economics can be broken down into microeconomics , which examines individual decisions, and macroeconomics , which is concerned with the economy as a whole. Both types of economics utilize historical trends and current conditions to inform business decision-making and make predictions of how markets will behave in the future.

Why Is Studying Economics Important?

Students who choose to study economics not only gain the skills needed to understand complex markets but come away with strong analytical and problem-solving skills, as well as the business acumen necessary to succeed in the professional world.

In fact, economics can be useful for professionals in all industries and aspects of daily life, not just in business.

Access your free e-book today.

7 Reasons to Study Economics

Here’s a look at seven advantages of studying economics and how it can benefit both your organization and career.

1. You'll Expand Your Vocabulary

Whether it’s scarcity (limited resources), opportunity cost (what must be given up to obtain something else), or equilibrium (the price at which demand equals supply), an economics course will give you fluency in fundamental terms needed to understand how markets work. Even if you don’t use these words often in your current role, studying these economic terms will give you a better understanding of market dynamics as a whole and how they apply to your organization.

2. You’ll Put New Terms into Practice

Economics isn’t just learning a set of technical words, it’s actually using them to develop a viable business strategy . Once you understand the terms, it’s easier to use theories and frameworks, like Porter’s Five Forces and SWOT analyses, to assess situations and make a variety of economic decisions for your organization. For example, many companies need to decide whether to pursue a bundled or unbundled pricing model or strategize for the best ways to maximize revenue .

3. You’ll Understand Your Own Spending Habits

Economics will teach you about how your organization and its market behaves, but also offer insights into your own spending habits and values. For example, Willingness to Pay (WTP) is the maximum amount someone is willing to pay for a good or service. There’s frequently a gap between hypothetical and actual WTP, and learning about it can help you decode your own behavior and enable you to make wiser financial decisions.

For Shamari Benton, the concepts he learned in Economics for Managers opened his eyes to how everyday decisions are infused with economic calculations and principles.

“A simple grocery store visit becomes filled with economic references and analytical ponders,” Benton says.

4. You’ll Master the Nuances of the Field

Many people think of economics as just curves, models, and relationships , but in reality, economics is much more nuanced. Much of economic theory is based on assumptions of how people behave rationally, but it’s important to know what to do when those assumptions fail. Learning about cognitive biases that affect our economic decision-making processes arms you with the tools to predict human behavior in the real world, whether people act rationally or irrationally.

5. You’ll Learn How to Leverage Economic Tools

Learning economic theory is one thing, but developing the tools to make business decisions is another. Economics will teach you the basics and also give you concrete tools for analysis. For example, conjoint analysis is a statistical approach to measuring consumer demand for specific product features. This tool will allow you to get at the surprisingly complicated feature versus price tradeoffs that consumers make every day.

For example, imagine you work for Apple Inc. and you want to know what part of the iPhone should improve: Battery life, screen size, or camera. A conjoint analysis will let you know which improvements customers care about and which are worth the company’s time and money.

6. You’ll Be Better-Prepared for Graduate School

In addition to helping you make better decisions in both your personal and professional life, learning economics is also beneficial if you’re considering a graduate business degree. Studying economics can equip you with the problem-solving skills and technical knowledge needed to prepare for an MBA .

An MBA typically includes courses in finance, accounting, management, marketing, and economics, so if you decide an MBA is right for you, you’ll already be one step ahead. Furthermore, a foundational knowledge of economics enables you to use economic theories and frameworks to decide if graduate school is worth the financial investment.

7. You’ll Improve Your Career Prospects

An education in economics can improve your employability in a variety of industries. According to the World Economic Forum's Future of Jobs Report , analytical thinking and complex problem-solving skills top the list of transferable skills that employers will find increasingly important by 2025, both of which can be gained by studying economics.

In addition, many careers require knowledge of economic concepts, models, and relationships. Some possible career paths for economics students include finance, banking, insurance, politics, and healthcare administration . You’ll also be able to further your career in your current industry, as an understanding of the economics that power your industry can help you to be more effective in your role.

Options for Studying Economics

There are many options available for those looking to pursue an education in economics. Depending on your personal and professional goals, your current stage in life, and other important factors, you may choose to pursue an undergraduate or graduate degree in economics or take an online economics course to expand your future career opportunities.

Whether you're new to the business world or an experienced manager, having a thorough understanding of how markets work, pricing strategy, and consumer behavior is essential to success.

Do you want to take your career to the next level? Explore our eight-week online course Economics for Managers or other business essentials courses to learn how to apply economic principles to business decisions.

This post was updated on June 8, 2022. It was originally published on November 30, 2017.

About the Author

Why Study Economics?

Economics is a dynamic and influential field that touches nearly every aspect of our lives. From shaping government policies to understanding global markets, economics provides invaluable insights into how societies function and evolve. But what motivates individuals to pursue a career in economics, and why should you consider studying it?

By studying economics, you'll gain not only a deep understanding of how economies function but also invaluable analytical and critical thinking skills that are highly sought after in today's interconnected world. whether you aspire to shape policy, drive innovation, or understand human behaviour, economics provides a powerful lens through which to view the complexities of our global society. , what do we study in the department .

Our colleagues share why they chose to study Economics

Abi Adams-Prassl

What led you to a career in Economics?

As an undergraduate, I took a course on Public Economics at the same time as a philosophy module on theories of social justice. I was hooked. It opened my eyes to how economics can be used as a tool to tackle inequality in society. I was also incredibly lucky to have a brilliant mentor, Professor Ian Crawford, as a graduate student. I hadn’t seriously considered doing a PhD in Economics, and would not have done so, if it wasn’t for his encouragement and support.  

Johannes Abeler

When I was in high school, I was very interested in mathematics. I found that economics is the perfect space to combine these interests: to think about how people make decisions and how they interact, using mathematical tools to test my ideas against data. 

Elizabeth Baldwin

Before I was an economist, I was a mathematician. I found I wanted to work on problems that had a more immediate impact on the wider world and on questions that I cared about, so I left my postdoc in mathematics to take a masters in economics, and never looked back!  My own experience as a woman in economics, has been uniformly positive. Yes, people do ask a lot more questions throughout a seminar than they would do in mathematics, but I enjoy that level of engagement. 

Paola Conconi

After high school, I dreamt of a career in diplomacy or international organisations, so I enrolled in a bachelor’s in political science and then an MA in international relations. During these interdisciplinary studies in Italy and the US, I realized that I liked the rigour of economics and the “toolkit” it gave to address key policy relevant questions. This led me to obtain a M.Sc. and a Ph.D. in Economics. In my work today, I use theoretical models and empirical methods that learned while studying economics to address questions that are inspired by my earlier interdisciplinary studies.

Beata Javorcik

I was doing my university studies in the early 1990s – right after the fall of the Berlin Wall and the collapse of communism. This was the time when Fukuyma was writing about the end of history and designing market reforms in eastern Europe and the former Soviet Union was the challenge facing the Economics profession and policy makers. It was a very exciting time to study Economics. Studying epidemiology must feel a bit like this today.

Mathias Jensen

Why do you study Economics?

With my research, I aim to deepen our understanding of the socio-economic trajectories of diverse populations. Economics equips us with the necessary tools to dissect and address inequalities. 

I went to university wanting to understand how society worked and more about the ways it did not work – I had vague notions that the government could help solve society’s problems. I knew nothing at all about economics! Studying economics (alongside politics and philosophy) transformed the way I thought about the world. It made me analyse real world issues in a systematic way: economics taught me to try take my own prejudices out of my analyses. It was quite simply fascinating and inspiring!

Romuald Méango

I have always been amazed by the diversity of the people and situations that economics is relevant to; from the instantaneous decisions of traders in the City, to the long-term investments of cocoa farmers in Kumasi, and the dreams of would-be migrants pondering whether to cross the Sahara or not. 

Inès Moreno De Barreda

I’ve always loved problem solving and maths. However, as I advanced in my (5 years) undergrad in maths I missed being able to discuss with my family and friends whatever I was learning. After working in a risk consultancy firm for a couple of years I wanted to come back to academia. I spent one year at the UAB a as a research assistant to the micro theory group and I loved it. Jordi Massó introduced me to the Kidney matching problem, to strategy-proof social choice functions and stable coalition problems. It opened my eyes and I did a PhD in economics.

Niclas Moneke

Climate change will hit 500 million people in extreme poverty the hardest. Why? What can we do to address climate change without neglecting development for low-income countries? Development economists have long studied how market forces and policy can help eradicate poverty, but climate change will raise the stakes -- essentially combining two defining challenges of our time into one.

Barbara Petrongolo

I was drawn towards quantitative disciplines like maths or statistics and at the same time I was interested in questions that are typical of the social sciences. The combination of these interests made economics a natural choice, and even more the choice of specializing in labour economics. Major events in people’s work life determine their economic fortunes and their happiness (or unhappiness). Often an individual’s career shapes their identity and their sense of worth for society.

Federica Romei

I initially wanted to study medicine, then, at the very last minute, I realized that I would have never passed the University entrance test for Medicine, since I was not studying for it. Therefore, I picked Economics, instead, without knowing much about it. In Italy, it is not common at all to study Economics during high school, so I had a very vague idea of what it was. When I started my studies, I realized that I liked Economics a lot. I realized that it is a mix of math and social science. Therefore, very soon, I became passionate about it.

Find out about our outreach series: What Economists Really Do

The field of economics benefits from diverse voices and perspectives. The dynamic and interdisciplinary nature of economics demands a range of viewpoints to effectively analyse complex problems and devise innovative solutions. Economists are working with governments and businesses around the world to improve policy and make the economy work better for everyone. Find out how economics can be used to shed light on some of the biggest issues facing society today. 

Study with us

Undergraduate Study

We offer three undergraduate degrees in which you study Economics jointly with one or two other subjects: Philosophy, Politics & Economics; Economics & Management; History & Economics.

Graduate Study

Studying Economics at a graduate level can open a world of options and opportunities. We have several courses to choose from – all are designed to support your success and nurture a bright future.

1.1 What Is Economics, and Why Is It Important?

Learning objectives.

By the end of this section, you will be able to:

• Discuss the importance of studying economics
• Explain the relationship between production and division of labor
• Evaluate the significance of scarcity

Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life. Scarcity means that human wants for goods, services and resources exceed what is available. Resources, such as labor, tools, land, and raw materials are necessary to produce the goods and services we want but they exist in limited supply. Of course, the ultimate scarce resource is time- everyone, rich or poor, has just 24 expendable hours in the day to earn income to acquire goods and services, for leisure time, or for sleep. At any point in time, there is only a finite amount of resources available.

Think about it this way: In 2015 the labor force in the United States contained over 158 million workers, according to the U.S. Bureau of Labor Statistics. The total land area was 3,794,101 square miles. While these are certainly large numbers, they are not infinite. Because these resources are limited, so are the numbers of goods and services we produce with them. Combine this with the fact that human wants seem to be virtually infinite, and you can see why scarcity is a problem.

Introduction to FRED

Data is very important in economics because it describes and measures the issues and problems that economics seek to understand. A variety of government agencies publish economic and social data. For this course, we will generally use data from the St. Louis Federal Reserve Bank's FRED database. FRED is very user friendly. It allows you to display data in tables or charts, and you can easily download it into spreadsheet form if you want to use the data for other purposes. The FRED website includes data on nearly 400,000 domestic and international variables over time, in the following broad categories:

• Money, Banking & Finance
• Population, Employment, & Labor Markets (including Income Distribution)
• National Accounts (Gross Domestic Product & its components), Flow of Funds, and International Accounts
• Production & Business Activity (including Business Cycles)
• Prices & Inflation (including the Consumer Price Index, the Producer Price Index, and the Employment Cost Index)
• International Data from other nations
• U.S. Regional Data
• Academic Data (including Penn World Tables & NBER Macrohistory database)

For more information about how to use FRED, see the variety of videos on YouTube starting with this introduction.

If you still do not believe that scarcity is a problem, consider the following: Does everyone require food to eat? Does everyone need a decent place to live? Does everyone have access to healthcare? In every country in the world, there are people who are hungry, homeless (for example, those who call park benches their beds, as Figure 1.2 shows), and in need of healthcare, just to focus on a few critical goods and services. Why is this the case? It is because of scarcity. Let’s delve into the concept of scarcity a little deeper, because it is crucial to understanding economics.

The Problem of Scarcity

Think about all the things you consume: food, shelter, clothing, transportation, healthcare, and entertainment. How do you acquire those items? You do not produce them yourself. You buy them. How do you afford the things you buy? You work for pay. If you do not, someone else does on your behalf. Yet most of us never have enough income to buy all the things we want. This is because of scarcity. So how do we solve it?

Visit this website to read about how the United States is dealing with scarcity in resources.

Every society, at every level, must make choices about how to use its resources. Families must decide whether to spend their money on a new car or a fancy vacation. Towns must choose whether to put more of the budget into police and fire protection or into the school system. Nations must decide whether to devote more funds to national defense or to protecting the environment. In most cases, there just isn’t enough money in the budget to do everything. How do we use our limited resources the best way possible, that is, to obtain the most goods and services we can? There are a couple of options. First, we could each produce everything we each consume. Alternatively, we could each produce some of what we want to consume, and “trade” for the rest of what we want. Let’s explore these options. Why do we not each just produce all of the things we consume? Think back to pioneer days, when individuals knew how to do so much more than we do today, from building their homes, to growing their crops, to hunting for food, to repairing their equipment. Most of us do not know how to do all—or any—of those things, but it is not because we could not learn. Rather, we do not have to. The reason why is something called the division and specialization of labor , a production innovation first put forth by Adam Smith ( Figure 1.3 ) in his book, The Wealth of Nations .

The Division of and Specialization of Labor

The formal study of economics began when Adam Smith (1723–1790) published his famous book The Wealth of Nations in 1776. Many authors had written on economics in the centuries before Smith, but he was the first to address the subject in a comprehensive way. In the first chapter, Smith introduces the concept of division of labor , which means that the way one produces a good or service is divided into a number of tasks that different workers perform, instead of all the tasks being done by the same person.

To illustrate division of labor, Smith counted how many tasks went into making a pin: drawing out a piece of wire, cutting it to the right length, straightening it, putting a head on one end and a point on the other, and packaging pins for sale, to name just a few. Smith counted 18 distinct tasks that different people performed—all for a pin, believe it or not!

Modern businesses divide tasks as well. Even a relatively simple business like a restaurant divides the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, servers to wait on the tables, a greeter at the door, janitors to clean up, and a business manager to handle paychecks and bills—not to mention the economic connections a restaurant has with suppliers of food, furniture, kitchen equipment, and the building where it is located. A complex business like a large manufacturing factory, such as the shoe factory ( Figure 1.4 ), or a hospital can have hundreds of job classifications.

Why the Division of Labor Increases Production

When we divide and subdivide the tasks involved with producing a good or service, workers and businesses can produce a greater quantity of output. In his observations of pin factories, Smith noticed that one worker alone might make 20 pins in a day, but that a small business of 10 workers (some of whom would need to complete two or three of the 18 tasks involved with pin-making), could make 48,000 pins in a day. How can a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves? Smith offered three reasons.

First, specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage. (In later chapters, we will develop this idea by discussing comparative advantage .) People have different skills, talents, and interests, so they will be better at some jobs than at others. The particular advantages may be based on educational choices, which are in turn shaped by interests and talents. Only those with medical degrees qualify to become doctors, for instance. For some goods, geography affects specialization. For example, it is easier to be a wheat farmer in North Dakota than in Florida, but easier to run a tourist hotel in Florida than in North Dakota. If you live in or near a big city, it is easier to attract enough customers to operate a successful dry cleaning business or movie theater than if you live in a sparsely populated rural area. Whatever the reason, if people specialize in the production of what they do best, they will be more effective than if they produce a combination of things, some of which they are good at and some of which they are not.

Second, workers who specialize in certain tasks often learn to produce more quickly and with higher quality. This pattern holds true for many workers, including assembly line laborers who build cars, stylists who cut hair, and doctors who perform heart surgery. In fact, specialized workers often know their jobs well enough to suggest innovative ways to do their work faster and better.

A similar pattern often operates within businesses. In many cases, a business that focuses on one or a few products (sometimes called its “ core competency ”) is more successful than firms that try to make a wide range of products.

Third, specialization allows businesses to take advantage of economies of scale , which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines. For example, if a factory produces only 100 cars per year, each car will be quite expensive to make on average. However, if a factory produces 50,000 cars each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per car will be lower. The ultimate result of workers who can focus on their preferences and talents, learn to do their specialized jobs better, and work in larger organizations is that society as a whole can produce and consume far more than if each person tried to produce all of their own goods and services. The division and specialization of labor has been a force against the problem of scarcity.

Trade and Markets

Specialization only makes sense, though, if workers can use the pay they receive for doing their jobs to purchase the other goods and services that they need. In short, specialization requires trade.

You do not have to know anything about electronics or sound systems to play music—you just buy an iPod or MP3 player, download the music, and listen. You do not have to know anything about artificial fibers or the construction of sewing machines if you need a jacket—you just buy the jacket and wear it. You do not need to know anything about internal combustion engines to operate a car—you just get in and drive. Instead of trying to acquire all the knowledge and skills involved in producing all of the goods and services that you wish to consume, the market allows you to learn a specialized set of skills and then use the pay you receive to buy the goods and services you need or want. This is how our modern society has evolved into a strong economy.

Why Study Economics?

Now that you have an overview on what economics studies, let’s quickly discuss why you are right to study it. Economics is not primarily a collection of facts to memorize, although there are plenty of important concepts to learn. Instead, think of economics as a collection of questions to answer or puzzles to work. Most importantly, economics provides the tools to solve those puzzles.

Consider the complex and critical issue of education barriers on national and regional levels, which affect millions of people and result in widespread poverty and inequality. Governments, aid organizations, and wealthy individuals spend billions of dollars each year trying to address these issues. Nations announce the revitalization of their education programs; tech companies donate devices and infrastructure, and celebrities and charities build schools and sponsor students. Yet the problems remain, sometimes almost as pronounced as they were before the intervention. Why is that the case? In 2019, three economists—Esther Duflo, Abhijit Banerjee, and Michael Kremer—were awarded the Nobel Prize for their work to answer those questions. They worked diligently to break the widespread problems into smaller pieces, and experimented with small interventions to test success. The award citation credited their work with giving the world better tools and information to address poverty and improve education. Esther Duflo, who is the youngest person and second woman to win the Nobel Prize in Economics, said, "We believed that like the war on cancer, the war on poverty was not going to be won in one major battle, but in a series of small triumphs. . . . This work and the culture of learning that it fostered in governments has led to real improvement in the lives of hundreds of millions of poor people.”

As you can see, economics affects far more than business. For example:

• Virtually every major problem facing the world today, from global warming, to world poverty, to the conflicts in Syria, Afghanistan, and Somalia, has an economic dimension. If you are going to be part of solving those problems, you need to be able to understand them. Economics is crucial.
• It is hard to overstate the importance of economics to good citizenship. You need to be able to vote intelligently on budgets, regulations, and laws in general. When the U.S. government came close to a standstill at the end of 2012 due to the “fiscal cliff,” what were the issues? Did you know?
• A basic understanding of economics makes you a well-rounded thinker. When you read articles about economic issues, you will understand and be able to evaluate the writer’s argument. When you hear classmates, co-workers, or political candidates talking about economics, you will be able to distinguish between common sense and nonsense. You will find new ways of thinking about current events and about personal and business decisions, as well as current events and politics.

The study of economics does not dictate the answers, but it can illuminate the different choices.

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• Publisher/website: OpenStax
• Book title: Principles of Economics 3e
• Publication date: Dec 14, 2022
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• What Is Macroeconomics?

Gross Domestic Product (GDP)

The unemployment rate, demand and disposable income, what the government can do, the bottom line.

• Macroeconomics

Explaining the World Through Macroeconomic Analysis

When the price of a product you want to buy goes up, it affects you. But why does the price go up? Is demand greater than supply? Does the cost go up because of the raw materials needed to make it? Or, is it a war in an unknown country that affects the price?

To answer these questions, we need to turn to macroeconomics. Macroeconomic analysis provides a way to understand the world through studying the economy.

Key Takeaways

• Macroeconomics is the branch of economics that studies the economy as a whole.
• Macroeconomics focuses on three things: National output, unemployment, and inflation.
• Governments can use macroeconomic policy including monetary and fiscal policy to stabilize the economy.  
• Central banks use monetary policy to increase or decrease the money supply, and use fiscal policy to adjust government spending.  

What Is Macroeconomics? 

Macroeconomics is the study of the behavior of the economy as a whole. This is different from microeconomics, which concentrates more on individuals and how they make economic decisions. While microeconomics looks at single factors that affect individual decisions, macroeconomics studies general economic factors.

Macroeconomics is very complicated, with many factors that influence it. These factors are analyzed with various economic indicators that tell us about the overall health of the economy.

The U.S. Bureau of Economic Analysis provides official macroeconomic statistics.

Macroeconomists try to forecast economic conditions to help consumers, firms, and governments make better decisions:

• Consumers want to know how easy it will be to find work, how much it will cost to buy goods and services in the market, or how much it may cost to borrow money.
• Businesses use macroeconomic analysis to determine whether expanding production will be welcomed by the market. Will consumers have enough money to buy the products, or will the products sit on shelves and collect dust?
• Governments turn to macroeconomics when budgeting spending, creating taxes, deciding on interest rates, and making policy decisions.

Macroeconomic analysis broadly focuses on three things—national output (measured by gross domestic product), unemployment, and inflation.

Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces, commonly known as the gross domestic product (GDP) . This figure is like a snapshot of the economy at a certain point in time.

When referring to GDP, macroeconomists tend to use real GDP , which takes inflation into account, as opposed to nominal GDP , which reflects only changes in price. The nominal GDP figure is higher if inflation goes up from year to year, so it is not necessarily indicative of higher output levels, only of higher prices.

The drawback of GDP is that information has to be collected after a specified time period has passed. Therefore a figure for the GDP today would have to be an estimate.

GDP is nonetheless a stepping stone into macroeconomic analysis. Once a series of figures is collected over a period of time, they can be compared, and economists and investors can begin to decipher business cycles, which are made up of the periods alternating between economic recessions (slumps) and expansions (booms) that occur over time.

From there we can begin to look at the reasons why the cycles took place, which could be government policy, consumer behavior, or international phenomena, among other things. Of course, these figures can be compared across economies as well. Hence, we can determine which foreign countries are economically strong or weak.

Based on what they learn from the past, analysts can then begin to forecast the future state of the economy. It is important to remember that what determines human behavior and ultimately the economy can never be forecasted completely.

The unemployment rate tells macroeconomists how many people from the available pool of labor (the labor force) are unable to find work.

Macroeconomists agree when the economy witnesses growth from period to period, which is indicated in the GDP growth rate, unemployment levels tend to be low . This is because, with rising (real) GDP levels, we know the output is higher and, hence, more laborers are needed to keep up with the greater levels of production.

The third main factor macroeconomists look at is the inflation rate , or the rate at which prices rise. Inflation is primarily measured in two ways: the Consumer Price Index (CPI) and the GDP deflator. The CPI gives the current price of a selected basket of goods and services that is updated periodically. The GDP deflator is the ratio of nominal GDP to real GDP.

If nominal GDP is higher than real GDP, we can assume the prices of goods and services have been rising. Both the CPI and GDP deflator tend to move in the same direction and differ by less than 1%.

What ultimately determines output is demand . Demand comes from consumers, from the government, and from imports and exports.

Demand alone, however, will not determine how much is produced. What consumers demand is not necessarily what they can afford to buy, so to determine demand, a consumer's disposable income must also be measured. This is the amount of money left for spending and/or investment after taxes.

Disposable income is different from discretionary income, which is after-tax income, less payments to maintain a person's standard of living.

To calculate disposable income, a worker's wages must be quantified as well. Salary is a function of two main components: the minimum salary for which employees will work and the amount employers are willing to pay to keep the employee. Given that demand and supply go hand in hand, salary levels will suffer in times of high unemployment, and prosper when unemployment levels are low.

Demand inherently will determine supply (production levels) and an equilibrium will be reached. But in order to feed demand and supply, money is needed. A country's central bank (the Federal Reserve in the U.S.) typically puts money in circulation in the economy. The sum of all individual demand determines how much money is needed in the economy. To determine this, economists look at the nominal GDP, which measures the aggregate level of transactions, to determine a suitable level of the money supply .

There are two ways the government implements macroeconomic policy. Both monetary and fiscal policy are tools the government uses to help stabilize a nation's economy. Below, we take a look at how each works.

Monetary Policy

A simple example of monetary policy is the central bank's open market operations . When there is a need to increase cash in the economy, the central bank will buy government bonds (monetary expansion). These securities allow the central bank to inject the economy with an immediate supply of cash. In turn, interest rates—the cost to borrow money—are reduced because the demand for the bonds will increase their price and push the interest rate down. In theory, more people and businesses will then buy and invest. Demand for goods and services will rise and, as a result, the output will increase. To cope with increased levels of production, unemployment levels should fall and wages should rise.

On the other hand, when the central bank needs to absorb extra money in the economy and push inflation levels down, it will sell its Treasury bills , or T-bills. This will result in higher interest rates, which will cause less borrowing, less spending, and less investment. It will also decrease demand, which will ultimately push down the  price level (inflation) and result in less real output.

Fiscal Policy

The government can also increase taxes or lower government spending in order to conduct a fiscal contraction . This lowers real output because less government spending means less disposable income for consumers. And, when more of a consumer's wages go to taxes, demand will also decrease.

A fiscal expansion by the government would mean taxes are decreased or government spending is increased. Either way, the result will be growth in real output because the government will stir demand with increased spending. In the meantime, a consumer with more disposable income will be willing to buy more.

A government will tend to use a combination of both monetary and fiscal options when setting policies that deal with the economy.

What Are the Key Macroeconomic Indicators?

The key macroeconomic indicators are the gross domestic product, the unemployment rate, and the rate of inflation.

What Is the Purpose of Macroeconomic Analysis?

Macroeconomic analysis allows a country to monitor its economic health, develop sound policies and practices, and sustain suitable growth.

How Does the Government Influence Macroeconomics?

The two main ways a government can influence macroeconomics is through monetary policy and fiscal policy. Monetary policy helps control the flow and quantity of money in an economy while fiscal policy uses government spending and taxation to influence economic conditions.

The performance of the economy is important to all of us. We analyze the economy by primarily looking at the national output, unemployment, and inflation. Although it is consumers who ultimately determine the direction of the economy, governments also influence it through fiscal and monetary policy.

International Monetary Fund. " Macroeconomic Policy and Poverty Reduction ."

International Monetary Fund. " Monetary Policy: Stabilizing Prices and Output ."

U.S. Bureau of Labor Statistics. " Comparing the Consumer Price Index With the Gross Domestic Product Price Index and Gross Domestic Product Implicit Price Deflator ."

Federal Reserve System. " Open Market Operations ."

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Home › Study Tips › Why study economics? (And how to know if it’s the right subject for you)

Why study economics? (And how to know if it’s the right subject for you)

• Published January 16, 2023

If you’re considering taking economics as a major or a minor, you may be wondering why it’s such an important subject. Economics is a study of how people, businesses, organizations, and governments allocate resources. It involves understanding how people make choices and how those choices affect the production and distribution of goods and services in a market economy.

Here are some of the top reasons why studying economics could be beneficial to you:

1. Economics gives you a better understanding of the world

Economics can help you understand the global markets, economic policies, and the impacts they have on other countries. Because economics studies the allocation of resources, it can help you understand the factors behind supply and demand, production costs, and the long-term effects of these factors. This knowledge is essential for understanding international relations and global politics.

2. It will help you make better financial decisions

Knowing how to make better financial decisions is an important life skill, especially since the decisions we make now will affect our future opportunities. By studying economics, you can learn how to budget appropriately, make informed investments, and make sound economic decisions for yourself, your family, and your community.

3. It can open doors to career options

A degree in economics could lead to many opportunities in finance, business management, public policy, or other related fields. Studying economics can give you the knowledge needed to solve complex economic problems through data analysis, problem-solving skills, and research skills. Those skills can help you stand out from other applicants in a competitive job market.

4. You’ll gain critical thinking skills

Economics encourages critical thinking by examining facts and data to come up with solutions to economic problems. Understanding supply and demand in different markets requires extensive data analysis which helps develop analytical and problem-solving thinking skills – something that is highly valued by employers today.

Studying economics can provide invaluable insight into many aspects of our lives including personal financial decisions, government regulations, global market forces, and the impact of policies on the economy. With a degree in economics, you’ll be well-equipped to tackle challenges in a rapidly changing world.

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Why Study Economics?

What is economics.

An undergraduate degree in economics seeks to educate students about how choices are made by consumers, workers and firms, and how these decisions aggregate into economy-wide phenomena. Economics is often dryly described as studying “the allocation of scarce resources”. In practice, we study three major types of problems.

First – we study incentives, meaning that we are interested in how people make choices, and how they react to changes in prices and other aspects of the environment. For example, how will a household’s decision about whether to take out a mortgage depend on their expectation of future house prices and interest rates? And, how will a mortgage broker’s decision to approve a risky loan depend on their ability to quickly sell it off to a pension fund?

Second – we are interested in the strategic interaction of agents. When someone makes a decision, they must anticipate how other players will react, and what information is conveyed by these decisions. For example, if one mortgage broker weakens their mortgage requirements, will other brokers loosen theirs? And, if a mortgage broker tries to sell off a mortgage rather than hold onto it themselves, what should the investor infer about the quality (i.e. riskiness) of the underlying mortgages?

Third – we are interested in how individual decisions aggregate to the industry-wide level or economy-wide level, sometimes with unexpected effects. For example, in the run up to the 2008 financial crisis, mortgage brokers issued very risky loans knowing that they could sell them to pension funds, causing a bubble in housing prices. On the flip side, new financial products can generate economic growth by allowing the retirement savings of individuals to be channeled into new investment opportunities.

Find out more about our  faculty research .

Employment Opportunities

As an analytical, STEM-certified Bachelor of Arts degree, the Economics and Business Economics majors prepare students for a wide variety of occupations. Our graduates find jobs in accounting, banking, consulting, finance, government, management roles in entertainment and technology, but certainly not limited to these fields. They also go on to graduate school in fields like economics, business, law, etc.

To find out more about our former students, check out the alumni survey and read some of our alumni interviews .

Economics vs. Business

Many prospective students face the choice between studying in an economics department (like UCLA) or at a business school. There is a fundamental difference between the two types of program in the questions we ask. Economics seeks to understand how society should organize production. Studying business and finance is a component of this, but we also wish to understand macroeconomic questions (e.g. Why are some countries rich and some countries poor?) and public policy questions (How should society provide health care?).  While a business school focuses on specific aspects of how a business runs (e.g. marketing, human resources), a liberal arts degree in economics provides a broad education that prepares students for a wide variety of careers and a lifetime of learning.

An economics degree also has the advantage of providing a more complete and rigorous foundation in the principles of economics and data analysis. We believe these skills provide students with the intellectual foundation needed for our challenging upper division classes, like finance and strategy, and for a successful career in a rapidly changing global economy.

Please see the pages about our courses for more details.

UCLA Department of Economics

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An Overview on Macroeconomics: Ideas, Approaches and Importance

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Macro Economic Essays

These are a collection of essays written for my economic blogs.

Exchange Rate Essays

• Effects of a falling Dollar
• Why Dollar keeps falling
• Discuss Policies to Stop the Dollar Falling
• Does Devaluation Cause Inflation?
• Benefits and Costs of Falling Dollar
• Reasons for Falling Dollar
• The Dollar as the World’s Reserve Currency

Economic Growth Essays

• Evaluate Benefits of Economic Growth
• Essays on Recessions
• Causes of Recessions
• Problems of Recovering from a Recession
• What can Increase Long-Run Economic Growth?
• Discuss Effect of a fall in the Savings Ratio

Inflation Essays

• Discuss the Difficulties of Controlling Inflation
• Should the aim of the Government be to Attain Low Inflation?
• Explain What Can Cause a Sustained Increase in the Rate of Inflation
• Reasons for low inflation in the UK
• Inflation Explained
• Difficulties of Inflation targeting
• Hyperinflation

Unemployment Essays

• Explain what is meant by Natural Rate of Unemployment?
• Should the Main Macro Economic Aim of the Government be Full Employment?
• The True Level of Unemployment in the UK
• What explains low inflation and low unemployment in the UK?

Demand Side Policies

• Discuss effect of Expansionary demand-side policies on Balance of Payments and Environment
• Effects of a Falling Stock Market
• How do Mortgage Defaults affect and Economy?
• Discuss the effect of increased Government spending on education
• Phillips Curve – Trade-off between Inflation and Unemployment

Development Economics

• Why Growth may not benefit developing countries
• Does Aid Increase Economic Welfare?
• Problems of Free Trade for Developing Economies

Fiscal Policy

• Will US Economy benefit from Tax Cuts?
• Can Fiscal Policy solve Unemployment?
• Explain Reasons for UK Current Account Deficit
• Benefits of Globalisation for Developing and Developed Countries

Monetary Policy

• Discuss Effects of an Increase in Interest Rates
• How MPC set Interest Rates
• Benefits of High-Interest Rates (and recessions)
• Who Sets interest rates – Markets or Bank of England?

Economic History

• Economics of the 1920s
• What Caused Wall Street Crash of 1929?
• UK economy under Mrs Thatcher
• Economy of the 1970s
• Lawson Boom of the 1980s
• UK recession of 1991
• The great recession 2008-13

General Economic Essays

• The Dismal Science
• Difference Between Economists and Non Economists
• War and Recessions
• The Economics of Fear
• The Economics of Happiness
• Can UK and US avoid Recession?
• 3 Of the Worst Economic Policies
• Overvalued Housing Markets
• What Went Wrong with US Economy?
• Problem with Bailing out financial sector
• Problems of Personal Debt
• Problem of Inflation
• National Debt in the UK
• How To Survive a Recession
• Can A recession be a good thing?

Chinese Economy

• Problems of Chinese Economic Growth
• Should we worry about a strong China
• Chinese Growth and Costs of Growth
• Chinese Interest Rates and Economic Growth

Model essays

• A2 model essays
• AS model essays
• Top 10 Reasons For Studying Economics
• Inflation explained by Victor Borge
• Funny Exam Answers
• Humorous look at Subprime crisis

Department of Economics

• Why Study Economics?

Preparing you for an ever-changing world

The study of economics helps people understand the world around them. It enables people to understand people, businesses, markets and governments, and therefore better respond to the threats and opportunities that emerge when things change. Economics majors are well-positioned in an ever-changing world because they have problem solving and analytical skills that allow them to succeed in variety of career paths—law, risk management, actuary, finance, foreign affairs, public administration, politics, policy analysis, health administration, entrepreneurship, market analysis, journalism, and unknown careers of the future.

The breadth and flexibility of an economics degree prepares students to adjust to unexpected changes and take advantage of unexpected opportunities. A study by LinkedIn  (PDF, 43 KB) found that college graduates change jobs and careers about four times in the first ten years after graduation. With its wide-ranging applications, economics is a great choice in an ever-changing world.

Providing you with the knowledge and skills that employers want

Economics, at its core, is the study of how to evaluate alternatives and make better choices. It develops critical-thinking and problem-solving skills to make good decisions. It develops analytical skills to examine data to support good decisions. These skills are desired across careers in the public and private sectors. An annual study by the National Association of Colleges and Employers (NACE) consistently finds that employers want the skills gained from studying economics—the ability to make decisions, solve problems, obtain and process information, analyze data, and write and speak effectively.

Ensuring your successful future

No matter what the future holds, an economics major helps people succeed. Understanding how decisions are made, how markets work, how rules affect outcomes, and how economic forces drive social systems will equip people to make better decisions and solve more problems. This translates to success in work and in life.

Though economics majors enjoy relatively high starting salaries, the key indicator of the value of an economics major is long-term success and lifetime earnings. A recent study  (PDF, 194 KB) finds the lifetime earnings of economics majors outpaces other business major, social science majors, and even general engineering majors. Another study  (PDF, 1.2 MB) finds that lawyers with an undergraduate degree in economics earn $10,000 more annually than other lawyers. And an analysis of S&P 500 CEOs  (PDF, 289 KB) showed that economics majors are more likely to become a CEO than any other major.

Enabling you to contribute to the greater good

Economics provides the primary framework for public policy analysis. The major equips people to understand the fundamental policy issues that shape market and social outcomes. An economist understands the immediate issues like tradeoffs, benefits versus costs, market failure, public finance, but also understands the broader issues of generational impacts, welfare impacts, and inequality. Economics majors are equipped with the language and skills to engage in public policy debates and act to advance economic and social progress.

Preparing you for graduate school and law school

Economics imparts clear reasoning and logical thinking. This not only helps people do well personally and professionally, it helps prepare students for graduate programs and law school.

Law school? Studies show  (PDF, 60 KB) that economics majors consistently have one of the highest average LSAT scores among all majors. Economics majors also have law school acceptance rates considerably higher than most majors, including pre-law programs.

MBA? Economics majors possess the broad perspective and problem-solving skills that top MBA programs value, and studies show  (PDF, 143 KB) they have the highest average GMAT score among all business majors.

Graduate programs? Economics provides a strong foundation for graduate study in economics, public policy, political science, sociology, among others. Students interested in pursuing a graduate degree in economics should consider a minor in math.

Enhancing other majors

Economics can be a valuable complement to most other majors. The breadth and flexibility of an economics major can be an invaluable way for people to diversify when paired with a more career-specific business major like accounting, marketing, finance, or computer information systems, and even more so when paired with a non-business major like computer science, healthcare management, journalism, environmental science, building science, or design.

Why I Majored in Economics

Cameron greene '25.

I arrived at Yale thinking I would major in Ethics, Politics, and Economics and eventually attend law school. I took coursework in Directed Studies, Russian language, and political theory.

Taking intro microeconomics in the summer before sophomore year with Professor Koker, I enjoyed learning about the behavior of rational agents, such as the need to weigh opportunity costs. The economist’s way of thinking resonated with me. By providing new motivation, economics rekindled my love of math. Since sophomore year I have worked as an economic research assistant through the Tobin program and individual hires in the School of Management, Jackson School, and ISPS. Junior year, I switched to the Economics major for the opportunities to work more closely with economics faculty and to take more quantitative economics coursework.

The community is intimate. It is easy to find classmates to work on psets with. I have discovered new interests through the structure of the major and the research interests of faculty. Entering my senior year, I am looking forward to the challenge of writing my thesis. I am grateful for the support I have received from faculty mentors.

Marcella Villagomez '24

When I got to Yale, I planned to major in Computer Science and Economics. I knew I wanted to explore and develop empirical models and understand their implications.

I decided on switching to just Economics at the end of my Sophomore year. I found a deep interest in the high-level programming required of econometrics, and found that there were a multitude of careers I could pursue within that realm. I have always found an interest in Economics due to its unique ability to bring together the quantitative (via modeling) and the qualitative (consistently diving into why the model appears the way it does).

I have thoroughly appreciated my experience within the major. Given that there are relatively few major requirements, I had the opportunity to explore so many different applications within the real-world, such as trade, industrial organization, and healthcare.

Nicholas Trenholm '24

In high school, I developed a very strong interest in government and politics. This led me to enter Yale planning to major in Ethics, Politics, and Economics – an interdisciplinary program that prepares you for a career in public policy.

My freshman year, I took classes in all three of the disciplines under the umbrella of the EP&E major. After completing two semesters, one thing was clear. I enjoyed my economics classes far more than the others. I loved the real world applicability, the basis in quantitative and observable fact, and the logical puzzles that economics problems present you with. Yale's economics department boasts the best faculty in the world who, while producing industry-leading research, take deep care and pride in teaching undergraduates. The department also gives students the chance to participate in and contribute to innovative research projects. I have had the opportunity to learn from such an amazing array of professors, such as William Nordhaus and Costas Meghir. With course flexibility and a wide variety of electives, you can truly make the major your own. I decided to major in economics because I am passionate about the subject and value the support given by the wonderful advisors, staff, and faculty in the department.

My experience as an economics major has been one of growth and excitement. The major's core classes provide students with an excellent foundational knowledge of economics. You will be challenged at times and rewarded for the learning experience you are taking part in. I love the freedom provided by the major so that each semester I can put together a class schedule that excites me. From game theory to personal finance, each class is an opportunity to improve your economic toolkit and engage with a new and interesting subject matter. In addition to the world-class professors, the teaching assistants and advisors in the economics department really define the major. They always go the extra mile to ensure students are having a positive, constructive learning experience. The overall economics community at Yale is supportive, collaborative, and dynamic. I would encourage all new students to explore economics at Yale.

Annie Lin '24

I arrived at Yale in September 2020 planning to double major in Economics and Electrical Engineering.

I've known that Economics was my major for me since my Junior year of high school, and it was probably not for the reason why everyone else majored in Economics. I like Economics because I sucked at it - I simply could not understand how one could translate social behavior down to models and numbers on a piece of paper. I think the challenge of delving into a field so unfamiliar and knowing that I had to work harder to strengthen my knowledge and build the necessary quantitative skills drove me to enjoy the work as I began to see Economics' practical applications in real life. I worked to build my understanding of the principles of microeconomics and macroeconomics brick by brick until I had a solid foundation that allowed me to explore other fascinating areas, such as labor economics and behavioral finance, and decided that it was the major for me ever since then.

My experience as an economics major has been very fruitful, especially as a student of another STEM major (electrical engineering), I could combine complementary skills from both majors to further my understanding of underlying concepts from both majors. I've particularly enjoyed using my coding background to work on data-driven projects as a Tobin RA or creating a simple regression model for PSETs. The best part of being an Economics major is that you are hands-on with applying the theories you've learned in class to history or your own models while working with the most up-and-coming researchers in your field.

Top 5 reasons to study economics

Learnings & Academics

Studying economics is more than understanding the economy. It’s about analyzing how individuals, groups and countries manage and use their resources.

Economics is a broad subject—so much so that it’s broken down into macroeconomics (looking at the economy as a whole) and microeconomics (focusing on individual decisions). Both aspects are important to inform future choices and forecast market trends, and by studying them you’ll develop skills to take into any ambitious career.

So what’s the deal with getting an education in economics? We’ve put together our top five reasons below, so you can make an informed decision about your future in economics.

1.    Economics is everywhere

Economics is a part of everyday life, and it’s also the gateway to the future. Studying economics gives you a better understanding of market dynamics and from there, you’ll be able to apply your knowledge to different organizations you go on to work with.

What’s more, at IE University, it’s not all theory—you’ll be able to put your new knowledge to work and apply it to different contexts.

The field of economics is also growing at a rapid rate. Cryptocurrencies and fintech are redefining today’s landscape, and those with a solid economic understanding will be those who lead us into a future of limitless possibilities.

2.    Make an impact

Economics allows you to drive positive change. It’s a field of study that’s interwoven with technology, management, entrepreneurship and humanitarian progress, so our programs take a hands-on approach to introduce you to these different aspects and their potential for unlocking growth. Our economics programs also enable you to understand the links between these different but interrelated areas, so your future decisions are fully informed.

As the economy is constantly changing, with your knowledge, you’ll be ready to influence business decisions and adapt to fluctuating markets effectively.

3.    Gain an international perspective

Economies work in tandem with each other. The links between them will give you an international understanding of how the world works and reveal insights about different cultures, people and societies.

What’s more, studying at IE University will surround you with a unique and international community, so you’ll be expanding your economic horizons and your global mindset at the same time.

4.    develop transferable skills.

Studying economics develops a lot of soft skills for you to take into any career. In particular, economics puts you in a prime position to develop your analytical and complex problem-solving skills. Other important skills for our globalized world include communication and cultural awareness, which you’ll also hone with an economics program. Additionally, you’ll improve your business knowledge—an asset that is essential in every corner of the working universe.

Economics programs equip you for graduate success, whatever sector you go on to work in.

5.    Boost your career prospects

Economics is the backbone of any sector and you’ll be able to apply your knowledge across a variety of roles. With economics, your potential career paths include (but aren’t limited to!): finance, banking, insurance, law, and governance. Of course, studying economics opens up more senior roles. With a master’s degree in economics, you’ll be in the running for high-level positions.

According to the World Economic Forum’s Future of Jobs Report , analytical thinking and complex problem-solving are top skills for 2025. Economics graduates are already in high demand, and that demand is only going to increase.

Discover economics at IE University!

Studying economics at IE University puts you at the forefront of industry developments and shapes you into an excellent problem-solver.

Author: Lurdes

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How to Write a Good Economics Essay

Governor November 28, 2019 Real World Applications 3 Comments

Many students ask “How to write an economics essay?” This Guide to Writing a Good Economics Essay is applicable to both IB economics as well as the Singapore JC A-Level H2 economics examinations. Many of the pointers here are also applicable to large-mark case study questions.

6 Steps to Writing a Good Economics Essay

Step 1: dissect the question.

Make sure you analyse and fully understand the KEYWORDS and REQUIREMENTS of the question. This is a very important skill that is taught in our economics tuition classes .

For example, “Best”, “Most Effective” are closely related but mean different things.

Paraphrase the question to make it simpler if necessary.

Take note of the command word (eg: Explain, Discuss) as it determines the approach needed for the essay, for example, whether two sides are needed or one side is sufficient. Below are some common examples found in economics essay questions:

Command Words                                      Action Required

Account for                                                 Explain why

Analyse                                                        Break it down into step-by-step explanations

Assess                                                          For & Against. Consider other factors.

Compare                                                      Identify Similarities & Differences

Distinguish                                                   Point out differences

Discuss                                                        Explore both sides

Evaluate                                                       The Good and The Bad.

Explain                                                          Show why and how

Explain whether                                            Cover both possibilities

Examine                                                        Look closely. How so and how not so?

To What Extent                                              Yes…..But….Judgment

Remember to look out for the context in the question. This is usually given in the form of a country (eg: Singapore). The examples in your essay must be tailored to this particular context (for example, do not suggest interest rate policy for Singapore as that is considered infeasible in the Singapore context). If no context is given, any real-world example can be used.

Keep in mind the question throughout the essay and remember to always answer the question. Don’t go off-point!

Common Examiner’s Comment :  Not Answering Question (NAQ))

Step 2: Plan Your Answer

Take some time to consider what economic framework you will use to approach the question. Scribble down your main thesis and anti-thesis points. Ensure they ANSWER THE QUESTION.

Step 3: Essay Introduction

In the introduction, include definitions of keywords in the question and spell out the economic framework you will employ for your answer as well as key definitions.

Step 4: Body of Essay

In the body , there will be several paragraphs. 

The number of points/paragraphs depends on the question. It is common to require 2 main points for each 10 mark essay and similarly for 15 mark essay questions. Under each main point, there may be 1-2 sub-points.

Use one paragraph for each sub-point you are making.

However, do not be too focussed on the number of points or paragraphs. The key is to answer the question.

For each body paragraph , use TET’s PEEL(ED) structure. Include only one main idea per paragraph.

• Point – Write your point in the first sentence so that markers will know what the paragraph will be about. The topic sentence must directly answer the question!
• Explanation – Explain what you mean
• Elaboration – Provide further analysis with clear step-by-step economic reasoning. This part may be done with examples as well as diagrams.
• Link – Link your explanations back to the Point and to answer the question.
• Exemplification – Give an example to support your reasoning. It can be statistics or real-world examples (for Case Studies, evidences from the Case must be uncovered!)
• Diagram – Where possible, araw an appropriate diagram with correct labelling and refer to it in your answer. This is crucial to show economic reasoning. Diagrams are very important for economics essays!

These are of course much easier said than done! Thus, students in our economics tuition classes are regularly honed to achieve such output including with tips and tricks to spark off the correct thinking process.

Our resources including the Study Guides for A Level and IB economics also provide a very powerful and handy reference on the depth of analysis required to score the highest marks.

Common Examiner’s Comment :  Mere statements and claims. No economic rigour.

Step 5: In-Body Evaluation

This applies especially to the 15 mark essays for A-Level Economics. A total of 5 marks is catered for Evaluation. Students should attempt to achieve about 2-3 in-body evaluation marks by pointing out how the thesis and anti-thesis points may not be true due to certain assumptions made that may not hold. Students may write “However,….may not necessarily happen……It would depend on whether….”. This statement can be written after the associated sub-point has been made.

Step 6: CONCLUDING SECTION

This only applies to the 15 mark essay questions.

Earn more evaluation marks by making a reasoned judgement. Deliver your verdict like a Judge! 

Check back on the question before you embark on this. Ensure your judgement answers the question.

So the question now is, how does a judge arrive at and deliver a verdict? Certainly, you should not be summarising or merely paraphrasing your main points in the conclusion. Obviously, you cannot expect more marks by saying the same thing over and over again!

After a verdict and reasons have been provided, consider providing further relevant insights and/or recommendations.

Common Examiner’s Comment :  Repetitive. Mere Summary.

Here are some quite common types of Concluding Sections 

• Consider the relative importance of thesis and anti-thesis factors. Which factors are most important or pertinent in the given context? For example, certain policies better fit specifc types of economies.
• Consider short-term vs long-term pros and cons. Do the short-term benefits outweigh the long-term costs? Is the policy more effective in the long-term, and if so, how pressing is the problem that needs to be addressed?
• Suggest a multi-policy approach, in which each policy has strengths and weaknesses that allow them to complement each other.

There is no way to really memorise evaluation points as every question and context is different. After all, you are being tested on higher-order thinking!

There are other evaluation tips that our students will receive but the key point here is that the training of the mind to think and apply economics is essential. That is where our weekly economics lessons come into play and that is why our students are often asked questions in class and trained to think on their feet. As ex-student Xue Min from YIJC testified, Chief Tutor Mr. Kelvin Hong does not just spoon-feeds our students but mentors them in their thinking to arrive at the answers. This was different from other tutors that her classmates experienced and eventually this was the key to Xue Min’s A grade.

In your essay, write in simple and clear sentences. Everything you write should be value-adding. You do not have to spend time showing off vocabulary as no extra points are awarded for language. Focus on economic reasoning. Use succinct and effective examples which support the point you are trying to make as well as accurate diagrammatic analyses.

For samples of great economics essays, please check out our free Economics Model Essays and sample Past JC A-Level Economics Questions and Answers .

For our econs publications that are sold worldwide, please check out our A Level & IB Economics Study Guides and Model Essays Publications

About The Economics Tutor

Founded by Kelvin Hong in 1998, The Economics Tutor is one of the leading economics tuition in Singapore . We provide a comprehensive program to guide students in understanding complex economic concepts and applying them through case study analyses, essay writing and discussion of real world events.

For 24 years, the way we teach JC Economics Tuition (A Level Economics Tuition) and IB Economics Tuition classes helped learners appreciate economics and everything it entails on a much larger scale. We take things step-by-step, implement effective techniques in memorising frameworks and give every student the chance to nurture their ideas. 

We don’t just solely focus on helping you get stellar grades and perfect scores. We make sure that we also hone the critical thinking skills and investment / business decisions you can use outside the four walls of your classroom.

Looking for a fun, engaging and probably the best economics tutor in Singapore? Look no further—check out our extensive and high quality economics resources on the website such as our IB and A Level Economics Publications

Book your lesson today and master the nuances of economics in our next class!

its good knowledgeable post regarding ib economics commentaries. i just wanted to admin can i use your blog as reference to my students .

Go ahead. We are all for helping students learn economics well.

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Why I Majored in Economics

Lucie abele ’22.

I chose to major in economics, because I enjoy learning about human decision-making and how our decisions directly impact our communities and environment. I also appreciate the extreme versatility within the field. Economics is the perfect crossover of research and analysis with human activity. Economic theory reaches into the fields of both STEM and social science, involving studies of areas such as math, politics, and psychology. Additionally, economic theory allows for quantitative analysis and qualitative examination of human and economic interaction in complimentary fields like law, business, finance, consulting, health and athletics.

For example, in Professor Stephen Marks’ Law and Economics class, we learned to evaluate legal cases from the perspectives of both economic and legal theory. I found the deliberate intertwining of these two fields intriguing – while they seem to be at odds, economic theory factors into legal theory and decision-making far more prominently than I would have expected. In Professor Marks’ course, I was able to explore in depth the decisions of various Supreme Court cases. I conducted detailed research regarding the legal and economic analysis of  Penn Central Transportation Co. v. City of New York,  diving into the legal issues of the case, the economic factors, and the social and public policy implications of the majority decision. Exploring topics such as these on a case-by-case basis showed me how applicable the study of economics is to so many other fields and opened my eyes to the myriad of areas and opportunities into which an economics major could lead.

Additionally, the economics faculty at Pomona is incredible. Economics is a subject that impacts everyone, and understanding economics, even at an introductory level, is helpful in one’s day-to-day life. The gifted scholars in this department not only teach Economic theory and its implications, but they also foster a successful learning environment and assist students in and out of the classroom. With them and with my Economics peers, I have made great friendships and have deeply enjoyed learning in this inviting space.

Cathy Kim ’22

Economics at Pomona is a great crossroads for those who enjoy the certainty of numerical answers and also seek a deeper understanding of human behavior and decision-making processes. As someone who enjoys reaching that one perfect answer while also wondering how people come to financial decisions, I found that economics was a great interdisciplinary major for me. Coming into college, I never considered majoring in economics, however, Professor Manisha Goel’s introductory macroeconomics class completely changed my outlook. Learning about models and their real-world applications helped me understand how central these principles are in our lives, and I found myself connecting my new economics knowledge in other classes and passions.

A great benefit of majoring in economics is that it opens doors to a wealth of diverse career options. Many economics majors pursue careers in finance and consulting, however, the tools you learn are applicable in any industry. Thanks to the practical knowledge I gained from my courses, I will be spending my summer interning in the fashion industry, at Bloomingdale’s Executive Development Program. Ultimately, you’re free to combine the major with anything else you are passionate about.

In my Economics of the Public Sector class, most of our lectures focused on domestic dynamics, however, we were given the freedom to research any country we were interested in for our final paper.

Using the principles, we learned in class, we analyzed the impacts of economic reforms on Mexico’s  ejido system and came up with policy recommendations. Much of the work I’ve done in my classes helps me look at economic realities through a more knowledgeable lens.

Asaka Mori ’22

I instantly knew I wanted to major in economics when I took Principles of Macroeconomics course in the first semester of my freshman year. I was amazed by how we could predict human behavior and model various social phenomena using theories I’ve learned in class. Economics helps us understand so much of what is happening around the world, including politics, climate change, poverty and health care. I also love the fact that it is an interdisciplinary major which incorporates both quantitative and qualitative analysis and can be used in any career paths after graduating from college.

Our Economics Department provides collaborative learning experience with professors. In the economics classes I have taken, I was fortunate to meet so many brilliant professors who are more than willing to help us learn economics and prepare for our future. I enjoy going to office hours, where professors are willing to explain the class material until I can fully understand and are open to talk about my future plans.

During Summer Undergraduate Research Program (SURP), I had a chance to work as a research assistant for Professor Michael Kuehlwein who was my professor for Principles of Macroeconomics class. We researched the impact of rising minimum wages in Los Angeles (L.A.) on the employment rate of the garment industry in the city. I was fascinated by this topic because the empirical effect of the change in minimum wages is still debated despite the fact that the economic theory suggests that the rise of minimum wages would decrease the employment rate. For our research, after collecting a sample of apparel manufacturing firms in L.A. from 2008 to 2018, we measured the ratios of the employment rates in the garment industry in L.A. to that in the United States as well as the ratios of minimum wages in L.A. to the federal minimum wages over these years. By using ratios, we controlled for other factors that may influence the employment rate, such as the rise of the rent prices and global competition. We ran regressions to measure how the ratio of minimum wages in L.A. to the federal minimum wages, which has been increasing as the minimum wages in L.A. increases rapidly over the years, is correlated with the ratio of employment rate in L.A. to that in the U.S., or how much faster the employment rate is falling in L.A. compared to the national trend. Professor Kuehlwein helped me write my own research paper for the first time, and this experience gave me a glimpse of what it is like to conduct a research in economics.

Pomona College gives us opportunities to explore different subjects, and I believe that economics is the one that is worth being explored. This is not just because of how great our economic department is but also because this subject is intertwined with other fields of study. After taking economics classes, I became interested in other subjects which are also discussed in our economics courses, such as mathematics, politics, and environmental analysis. If you are a Pomona student, I would definitely recommend taking at least one econ class!

Virgil Munyemana ’22

Coming into college, I knew I was interested in entrepreneurship. My sister recommended I do economics given its association with business and finance, so I honestly took economics courses on a whim at first. However, as I delved deeper into the major, I've realized how interdisciplinary the field is and all the different fields it could be used in, from policy work to academic research. I’ve even seen it used in social justice contexts, which is especially important given the renewed push for racial justice we’ve seen in the past summer. Economics can take you anywhere you want to go, it just depends on how you want to use it.

The professors are all very in love with the courses they teach and their enthusiasm shows, especially in office hours. They always try to make themselves as available as possible, which has been really helpful for me coming from a less privileged background. In addition, the economics department offers a cohort specifically for underrepresented students in the economics field to have a support system. Without this cohort, I probably wouldn’t have enjoyed the major as much as I did in my first year.

During the summer after my sophomore year, I was fortunate enough to have an internship at a private equity firm called the Vistria Group. They buy companies that work in healthcare, education, and/or financial services and try to improve their business models. I was working in the healthcare team and was tasked with creating an investment thesis for the durable medical equipment market, which is made up of things like glucose monitors, ventilators, and other products for chronic conditions. I had to use data from sources such as the Center for Medicare/Medicaid Services and the U.S. Census Bureau to support my argument, allowing me to use some of my economics knowledge in a real world situation. It was a really valuable experience and I also felt like I was doing some good in the world at the same time.

The economics department put out a very comprehensive statement in support of Black Lives Matter and acknowledged the role that economics can have in perpetuating these issues, as well as solving them. I appreciate the department taking the time to do this and am hopeful they will incorporate this mindset into the way classes are taught. I’m happy to be in a major where I feel supported.

Calvin Ng ’22

Growing up in Singapore, I was constantly exposed to policies which strived to maximize our benefits given the constraints of our limited natural resources. I had always considered an economics major, but with the vast array of fascinating fields offered, it initially felt difficult to confine myself to a single field of study. However, the beauty of economics lies in its multidisciplinary nature which allows me the flexibility to focus on economics in conjunction with my other interests.

Economics is a constantly evolving field that draws from a multitude of disciplines. For instance, in Professor Eleanor Brown’s microeconomics class, we attempted to quantify philosophy’s age-old trolley problem and studied how economists determine the value of a human life. In the field of behavioral economics, we integrate ideas from psychology to understand why humans sometimes act “irrationally.” In the new field of neuroeconomics, we interpolate the tools of neuroscience such as fMRIs to elucidate the intricacies of the human mind.

The economics major, which requires five electives, allows great flexibility by allowing students to craft their own path and gain depth in a particular subfield of economics. However, my best advice is to also take classes outside of your immediate field of interest. I took Economics of Immigration [course] on a whim this past semester, and it ended up becoming one of my favorite classes; I was able to gain a deep appreciation for the role of immigrants in a country’s success.

In addition, many students, like myself, also complete an additional major or minor. As an economics and biology double major, I am interested in solving health problems through scientific advancement and allocation of healthcare resources. Within the economics major, I was often given complete freedom to tackle research projects of my interest. In my Econometrics class, I had the opportunity to study the determinants of receiving the Influenza vaccine. I analyzed census data from the Centers for Disease Control and found that education level and race were the largest determinants. I hope to extrapolate these findings and apply them to the upcoming COVID-19 vaccines.

Outside of the classroom, I have explored a wide variety of internships. I gained experience as a research assistant investigating the dancing plant ( C.Motorius ) before working as a business analyst for StemCord, a biotechnology cord blood bank. This summer, I will be working as a summer associate for a consulting firm in Los Angeles. Hence, I strongly believe that the economics major will ground you with a strong foundation of the quantitative and qualitative skills required for almost any job. Whether your next destination is business, government, graduate school, or something completely different, you will be well equipped to take on the next challenge.

Helena Ong ’22

Economics embodies what it means to be interdisciplinary in both its foundational principles and its applications. Taking the introductory economics courses revealed how the discipline served as a baseline for understanding so much about human behaviors, interactions and facets of society. The upper division course selection exposes you to just how complex and diverse the field of study is with classes such as Corporate Finance, Behavioral Economics, and Environmental Economics that have personally helped me to understand how Economics is applicable to so many different fields.

The Economics Department at Pomona houses some of the most supportive and inspirational faculty I have met. Throughout my 10 economics courses, I have been able to learn from professors who have encouraged me through classes, office hours, research projects and even lunches. Whenever I had questions about my academic journey at Pomona or my internships and job opportunities, my economics professors provided me with invaluable insight and experience that has positively shaped my time at Pomona. It is so evident that the professors at the Economics Department not only are incredibly knowledgeable and passionate about what they teach, they also have a genuinely vested interest in their students’ lives. Whether it was helping me choose between internship offers or releasing an important statement about economics’ role in social issues, the faculty in the department are a huge reason I studied economics at Pomona!

I have been able to apply the knowledge from classes at several of my summer projects and internships. Working at the USDA, I was able to utilize trade and tariff theory I learned in my macroeconomics courses to help quantitatively model the U.S.-China trade-war in 2019. I have also been able to extend the financial and business side of economics at my internship in asset management with Alliance Bernstein where I worked to manage risk in institutional clients’ portfolios and my internship in Trading with JP Morgan where I will research markets for certain asset classes.

Ananya Sen ’22

I first fell in love with economics in my senior year of high school, when I came across Crash Course Economics on YouTube while preparing for a test and learnt about the practical applications of the subject – from how firms set prices to finding a way to measure individual happiness. And so, coming into college, I decided to major in economics.

However, I was only truly convinced of my choice when I took my first two electives at Pomona. It was then that I realized that economics is less a subject than a lens through which I can analyze absolutely anything and everything. For instance, in a paper I wrote for my Econometrics class, I studied the relation between literacy and mortality in India. Despite being a subject that focuses on optimization through the use of constraints ( iykyk ), economics for me proved to be optimal for the  freedom  it provides in the fields that it can be applied to – from mathematics to political science to psychology. Moreover, by comprising both normative and positive science, economics teaches one to bridge the gap between idealism and realism, and thus gain the potential to change society for the better.

Studying economics at Pomona is especially great because the professors are not only brilliant and truly passionate about the subject, but also exceptionally caring and invested in your personal success. The classes themselves are designed to teach you how to be a  good  economist; for instance, Professor Gary Smith’s Statistics course focuses a lot on how to avoid data modification, while Professor Malte Dold’s PPE course attempts to integrate ethics into economic analysis. Moreover, Pomona’s culture of collaboration is exemplified in the department: some of my most memorable nights at Pomona were spent wading through difficult but rewarding problem sets in one of the classrooms in Carnegie Hall with my classmates, nibbling on one or two chocolate muffins from the Coop.

This semester, I am working part-time as a research assistant to Professor Abhinash Borah at Ashoka University in New Delhi, where I am studying how polarization and the motivated reasoning it engenders influences content and (dis)information transmission in media spaces. The research involves designing a behavioral experiment, and analyzing social media algorithms, amongst other things. I am particularly excited about this opportunity because the scope of the project is more than just academic – apart from writing papers, we will also be brainstorming and implementing strategies to initiate discourse on these topics.

To any prospective students of economics, I will say this: do not be afraid to email professors, even if you have never met them before, and ask for advice on classes, research opportunities or grad school. The department provides you with all the support you may need, but it is up to you to seize it.

Franco Vijandre ’22

Coming into Pomona College I wanted to study something that would leave me with a diverse skill set, challenging both my quantitative and qualitative abilities, and economics does just that. Economics is about understanding behavior and real-world outcomes, and to do that you need to be creative in your reasoning but at the same time grounded in quantitative fact. Economics is also incredibly interdisciplinary and combines many of my other interests in mathematics, politics and sociology into one major. The interdisciplinary nature of the subject leads to a diverse offering of classes from finance courses to courses in development or international relations. The diversity of the major allowed me to find my own niche and granted me the flexibility to apply my economics degree to many potential career paths.

The professors in the Economics Department are truly remarkable. They all have a deep passion for what they teach and genuinely care about your learning. While the courses are challenging, the department provides all the tools for its students to succeed, with regular office hours, mentor sessions, and cohorts. The courses in the major are designed to equip students with a skill set to apply to real-world scenarios and original research. By my second year, I had already written two research papers surrounding my interest in voter trends, by utilizing the skills taught in my Economic Statistics and Econometrics classes. Most importantly the Economics department is filled with a great sense of camaraderie. Everyone is rooting for your success and the department will make any student feel at home.

This past summer I assisted Professor Michelle Zemel and Professor Manisha Goel in their research on economic uncertainty caused by the COVID-19 pandemic. My contribution to the research was to prepare a literature review to understand how an abstract concept like uncertainty is measured and what macro and microeconomic effects are expected during times of heightened uncertainty. I empirically tested the different methods of calculating uncertainty, aggregating millions of rows of stock price and forecaster data, to conclude that the uncertainty caused by the COVID-19 pandemic is at historic highs, even more so than the 2007-2009 recession. In addition to my summer research, I also interned at a boutique investment bank. I was working on several live deals in the medical devices and social media industries. During my internship, I was able to see how my studies in economics applied outside the academic setting. I constantly used econometric tools, and both macro and microeconomic theory to aid in my analysis and construction of financial models.

I would recommend to any incoming student, even if you are not interested in the field, to take at least one introductory course in economics. The economy affects everyone’s life and having a basic understanding of macro and microeconomic concepts will be incredibly useful in the future.

Kevin Wu ’23

There’s an old story that goes something like this: A physicist, a chemist, and an economist are stranded on a desert island, and they’re famished. Then a can of soup washes ashore. Chicken noodle soup let’s say.

But, famished as they are, our three professionals have no way to open the can. So, they put their brains to the problem. The physicist says, “We could drop it from the top of that tree over there until it breaks open.” The chemist says, “We could build a fire and sit the can in the flames until it bursts open.” The two squabble a bit, until the economist says “No, no, no. Come on, guys, you’d lose most of the soup. Let's do this. First, assume we have a can opener...”

Basically, I like to tell people I chose to major in economics so that I could assume and model my way out of any problem. Joking aside, economics is the intersection of math, psychology and decision making that can describe a wide array of experiences and phenomena that we hardly notice in our daily comings and goings—phenomena that are nonetheless incredibly revealing and insightful. It was both the wide breath and media coverage of the subject that initially drew me in, in addition to the fact that my high school economics teachers were really cool. Thanks Mr. Geers, et al.

Economics not only offers the opportunity to play with math, numbers and models, but it also enables us to better understand and recognize embedded assumptions in stories and models that drive how people think and interact. It marries stories and reality to models and numbers that we can digest and understand to get a better picture of what the heck is going on in the world around us.

As with any Pomona major, my most memorable experiences have been speaking with alumni, students and professors or working with them to get a better grasp of a specific problem, subject, or career path. There is a lot of content to cover in economics and some topics may be both mathematically and intuitively challenging, but when you sit down on zoom, and have an entire whiteboard filled with abstracts of Ash Ketchum, bizarre scribbles, and half-completed graphs—among many other things—and you’ve spent time with others really digesting a tough problem or discussing current events and plans for the future...that’s when you say to yourself: this is awesome.

For future students, all I have to say is try it out! Economics is so broad that you could find a niche in any of its verticals. What you learn along the way are the problem-solving mechanisms that will carry over to any occupation or club or obstacle you experience in the future, and faculty are really willing to sit down and help.

My Econstats companion and I last semester wrote a topic on the relationship between COVID-19 cases and the impact on the restaurant industry for different geographical relationships in the U.S. We were given the tools and the freedom to explore a variety of topics we were interested in and turned it into something we could pin to the refrigerator at the end of the year--which was really cool. It was like: Hey mom! I’m not just sitting around eating shrimp crackers during college. I’m doing something with my life.

One thing I’m really excited about—but kind of slow to complete—is an economic analysis of South Park (a TV show I’m into), SouthParkonomics if you will. It’s fun just taking some of the content learned in class and trying to apply in some quirky places to see how things hold up/what they look like. Taking theory to application, so they say. There’s a lot of that type of stuff at Pomona (not only in the econ department) where people are taking what they like to do and put it into something tangible. I didn’t really get it when I first got to campus, but it’s kind of contagious, so now I kind of do.      

If you ever have any questions, always feel free to reach out, you will find that more than often people will have a lot to give, even to complete strangers. Reach out to others in your classes and form a team to bounce ideas off and work with, building that team will be critical to your success. As with anything though, it takes time, so even if things aren’t going well—if you can even take one inch forward or find somebody to talk to—you’ve really gone a mile in accomplishing things. Fight On!

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Essay on Microeconomics and Macroeconomics

In this essay we will discuss about Microeconomics and Macroeconomics. After reading this essay you will learn about: 1. Meaning of Microeconomics 2. Scope of Microeconomics 3. Limitations of Microeconomics 4. Importance of Microeconomics 5. Problems of Interrelation and Integration of Micro and Macroeconomics 6. Meaning of Macroeconomics 7. Scope and Importance of Macroeconomics 8. Limitations of Macroeconomics.

• Essay on the Limitations of Macroeconomics

Essay # 1. Meaning of Microeconomics:

Microeconomics is the study of the economic actions of individuals and small groups of individuals. This includes “the study of particular firms, particular households, individual prices, wages, income, individual industries, and particular commodities.”

It concerns itself with the analysis of price determination and the allocation of resources to specific uses. The determination of equilibrium output of the firm or industry, the wage of a particular type of labour, the price of a particular commodity like rice, tea, or car are some of the fields of microeconomic theory.

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In the words of Ackley:

“Microeconomics deals with the division of total output among industries, products and firms and the allocations of resources among competing groups. It considers problems of income distribution. Its interest is in relative prices of particular goods and services.”

Microeconomics is, in fact, a microscopic study of the economy, according to Maurice Dobb. It is like looking at the economy through a microscope to find out the working of markets for individual commodities and the behaviour of individual consumers and producers.

In other words, in microeconomics we study the interrelationships of individual households and individual firms, and individual firms and individual industries to each other. In this sense, microeconomics involves the study of aggregates.

Essay # 2. Scope of Microeconomics :

“Price and value theory, the theory of the household, the firm and the industry, most production and welfare theory are of the microeconomic variety,”

Thus, microeconomics studies:

(i) How resources are allocated to the production of particular goods and services,

(ii) How the goods and services are distributed among the people, and

(iii) How efficiently they are distributed.

While studying the conditions in which the price of a particular good is determined, microeconomics assumes the total quantity of resources as given and seeks to explain their allocation to the production of that commodity.

The allocation of resources to a particular good depends upon the prices of other goods and the prices of factors producing them. It is, therefore, the relative prices of goods and services that determine the allocation of resources.

In other words, other things being equal, it is the allocation of resources that determines what to produce, how to produce, and how much to produce. This decision, in turn, depends upon the relative prices of goods and services. Thus, microeconomics is the study of price theory: how the price of a particular commodity like rice, tea, milk, fans, scooters, etc. is determined; how the wages of a particular type of labour, interest on a particular type of capital asset, rent on a particular land and profits of a particular entrepreneur are determined; and how efficiently the various resources are allocated to individual consumers and producers.

We briefly study these problems below.

In microeconomics the analysis of price determination and allocation of resources is studied in three different stages:

(i) The equilibrium of individual consumers and producers,

(ii) The equilibrium of a single market, and

(iii) The simultaneous equilibrium of all markets. Individual consumers and producers are unable to influence the prices of goods they buy and sell. A consumer is faced with given prices and he buys that much of the commodity which maximises his utility.

For an individual producer, input and output prices are given and he produces that much of the product which maximises his profits. In the market, the price and quantity bought and sold are determined by the actions of buyers and sellers. The aggregate demand and supply curves are derived from individual demand and supply curves.

The equality of aggregate demand and supply curves determines the price and the quantity bought and sold in the market. It applies both to product and factor markets. By relaxing some of the assumptions of the perfectly competitive market, this analysis is extended to monopoly, oligopoly and monopolistic, competition markets.

Finally, in microeconomics, the interrelations between the different markets are taken so as to determine all prices simultaneously.

Though, it is generally said that microeconomics is related to partial equilibrium analysis which is the study of the equilibrium position of an individual, a firm, an industry or group of industries, yet it is also a study of their interrelationships and interdependences within the economy which falls under the general equilibrium analysis.

First, there is the consumers market in which the quantity of each commodity demanded depends not only on its own price but also on the price of every other commodity available in the market. In this market, consumers meet producers to buy commodities which the former demand and the latter sell.

The demand of consumers for the various commodities depends upon their prices and the prices of the services which they offer. In other words, a consumer earns by selling the productive services he owns and creates demands for commodities.

The price at which a commodity sells depends upon its costs of production. The costs of production, in turn, depend on the quantities of the various productive services employed and the prices paid for them. Thus the supply of commodities in the market depends on the costs of the firms, and the prices and quantities of the various productive services used by them.

Secondly, there is the producers market or factor market. In this market, the demand for productive services (factors of production) comes from the producers, and supply from the consumers. The quantity of a service (factor) used in producing a commodity depends on the relationship between the prices of that service and other services, and on the prices of commodities.

Here producers meet labourers, capitalists, landlords and other resource-owners. In this market, money incomes are earned by resource-owners who own and sell their resources, the majority of whom are consumers. Thus microeconomics is a study of interacting units of consumers, producers, and resource-owners.

In this system, all prices are relative to one another. A change in any one price establishes a ripple which touches both product and factor markets. The interrelation between product and factor markets through prices is shown in Figure 1.

In this system, consumers and firms are linked through the product market where goods and services are bought and sold. They are also linked through the factor market where the factors of production are bought and sold. In the inner circle that consumers who are resource-owners sell productive resources in the factor market which are used by firms.

We are grateful to Daron Acemoglu, Mark Aguiar, George-Marios Angeletos, Susanto Basu, Ricardo Caballero, Andrew Caplin, Oguzhan Celebi, Daniel Chen, John Coglianese, Roberto Corrao, Xavier Gabaix, Luca Gagliardone, Ying Gao, Adam Guren, Basil Halperin, Tarek Hassan, Alexandre Kohlhas, Leonid Kogan, Chen Lian, Andrea Manera, Jackson Mejia, Karel Mertens, Stephen Morris, Giuseppe Moscarini, Georgios Nikolakoudis, Jonathan Parker, Christina Patterson, Charlie Rafkin, Eitan Sapiro-Gheiler, Robert Shiller, Andrei Shleifer, Luminita Stevens, David Thesmar, Aleh Tsyvinski, Adrien Verdelhan, Emil Verner, Christian Wolf, and seminar participants at Princeton, Harvard Business School, Northwestern, LSE, Oxford, Chicago Booth, Yale, Wharton, Boston University, Boston College, NYU, Maryland, Yale SOM, the NBER Summer Institute Behavioral Macroeconomics Meeting, ETH Zurich, Boston College, the VEAMS, the 2024 ASSA Meeting, and MIT. First posted version: June 19, 2022. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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Opinion: As conservatives target same-sex marriage, its power is only getting clearer

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It’s been two years since the U.S. Supreme Court ruling in the Dobbs case that overturned the federal right to an abortion, and the troubling concurring opinion by Justice Clarence Thomas in which he expressed a desire to “revisit” other landmark precedents, including the freedom to marry for same-sex couples, codified nationally by the Obergefell Supreme Court decision, nine years ago Wednesday

Since that ruling, the LGBTQ+ and allied community has done much to protect the fundamental freedom to marry — passing the Respect for Marriage Act in Congress in 2022; sharing their stories this year to mark the 20th anniversary of the first state legalization of same-sex marriages, in Massachusetts; and in California , Hawaii and Colorado launching ballot campaigns to repeal dormant but still-on-the-books anti-marriage constitutional amendments.

California Democratic Party endorses ballot measures on same-sex marriage, taxes, rent control

The party’s executive board voted Sunday on which measures they would endorse.

May 19, 2024

This winter, I worked with a team at the Williams Institute at UCLA School of Law to survey nearly 500 married LGBTQ+ people about their relationships. Respondents included couples from every state in the country; on average they had been together for more than 16 years and married for more than nine years. Sixty-two percent married after the court’s 2015 Obergefell marriage decision, although their relationships started before before that. More than 30% of the couples had children and another 25% wanted children in the future.

One finding that jumped out of the data: Almost 80% of married same-sex couples surveyed said they were “very” or “somewhat” concerned about the Obergefell decision being overturned. Around a quarter of them said they’d taken action to shore up their family’s legal protections — pursuing a second-parent adoption, having children earlier than originally planned or marrying on a faster-than-expected timeline — because of concerns about marriage equality being challenged. One respondent said, “We got engaged the day that the Supreme Court ruled on the Dobbs decision and got married one week after.”

World & Nation

Same-sex marriage ruling creates new constitutional liberty

The Supreme Court’s historic ruling Friday granting gays and lesbians an equal right to marry nationwide puts an exclamation point on a profound shift in law and public attitudes, and creates the most significant and controversial new constitutional liberty in more than a generation.

June 26, 2015

As we examined the survey results, it became clearer than ever why LGBTQ+ families and same-sex couples are fighting so hard to protect marriage access — and the answer is really quite simple: The freedom to marry has been transformative for them. It has not only granted them hundreds of additional rights and responsibilities, but it has also strengthened their bonds in very real ways.

Nearly every person surveyed (93%) said they married for love; three-quarters added that they married for companionship or legal protections. When asked how marriage changed their lives, 83% reported positive changes in their sense of safety and security, and 75% reported positive changes in terms of life satisfaction. “I feel secure in our relationship in a way I never thought would be possible,” one participant told us. “I love being married.”

The evolution of same-sex marriage

I’ve been studying LGBTQ+ people and families for my entire career — and even still, many of the findings of the survey touched and inspired me.

Individual respondents talked about the ways that marriage expanded their personal family networks, granting them (for better and worse!) an additional set of parents, siblings and loved ones. More than 40% relied on each other’s families of origin in times of financial or healthcare crisis, or to help out with childcare. Some told of in-laws who provided financial assistance to buy a house, or cared for them while they were undergoing chemotherapy for cancer.

Analysis:: Antonin Scalia’s dissent in same-sex marriage ruling even more scornful than usual

The legal world may have become inured to wildly rhetorical opinions by Justice Antonin Scalia, but his dissent in the Supreme Court’s same-sex marriage decision Friday reaches new heights for its expression of utter contempt for the majority of his colleagues.

And then there was the effect on children. Many respondents explained that their marriage has provided security for their children, and dignity and respect for the family unit. Marriage enabled parents to share child-rearing responsibilities — to take turns being the primary earner (and carrying the health insurance), and spending more time at home with the kids.

The big takeaway from this study is that same-sex couples have a lot on the line when it comes to the freedom to marry — and they’re going to do everything possible to ensure that future political shifts don’t interfere with their lives. As couples across the country continue to speak out, share their stories — and in California, head to the ballot box in November to protect their hard-earned freedoms — it’s clear to me that it’s because they believe wholeheartedly, and with good reason, that their lives depend on it.

Abbie E. Goldberg is an affiliated scholar at the Williams Institute at UCLA School of Law and a psychology professor at Clark University, where she directs the women’s and gender studies.

More to Read

Opinion: Interracial marriage went from criminal to commonplace. Could it go back?

June 9, 2024

Newsom urges California voters to protect same-sex marriage amid Supreme Court distrust

June 7, 2024

The U.S. has caught up to California on views of LGBTQ+ rights, poll shows

June 6, 2024

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Essay on Exercise in 500+ Words for Students in English

• Updated on  
• Jun 25, 2024

What are your physical fitness goals? How much do you weigh? Do you plan on running a marathon next year? The goal of all these questions is different but they involve a set of similar activities; Exercises. Physical exercises are activities that improve or maintain physical fitness and overall health. Engaging in exercise helps individuals stay physically fit and promotes mental well-being. Today, we will discuss an essay on exercise for students to highlight its importance and benefits.

Table of Contents

• 1 Why do we Exercise?
• 2 Types of Exercise
• 3 Should We Make Exercise a Habit?

Why do we Exercise?

Exercise is like any activity that requires physical effort and helps maintain physical fitness and overall health. When we exercise, our bodies undergo numerous physiological changes, such as an increase in heart rate, which further pumps more oxygen-rich blood to our muscles. This delivery of oxygen further benefits the muscles’ ability to perform efficiently and helps improve cardiovascular perseverance. 

The above effects further lead to improvements and long-term adaptations in our bodies. Further regular exercise also leads to: 

• Regular exercise helps reduce the risk of heart disease and improves cardiovascular health conditions. 
• Methodical exercise benefits in strengthening the muscles and making them more resistant to fatigue.
• Weight-bearing exercises help restore bone formation and reduce the risk of osteoporosis. 
• Exercise can improve insulin sensitivity and help regulate blood sugar levels. 

As per the study published in The Lancet Psychiatry in 2018, people who exercised were found with 43.2 percent fewer days of poor mental health than those who did not exercise. The numbers are sufficient enough to elaborate on the powerful link between physical activity and the importance of mental health in our lives.

Quick Read: Essay on Athletics

Types of Exercise

Now, as you come to know about the importance of exercise in our daily lives, similarly, it should also be noted that not all exercises are equally effective. Different physical activities offer unique benefits. 

To understand it more, let us learn about some main categories of exercises:

1. Aerobic exercise: Aerobic exercise is also known as cardiovascular exercise. This physical activity helps increase heart rate and breathing. Examples of aerobic exercise include running, cycling, swimming, and brisk walking. It is important to know that Aerobic exercise is an excellent workout for cardiovascular health and calorie burning.

2. Strength Training: A strength training exercise that works against resistance to build muscle strength. This type of exercise includes weightlifting, bodyweight training, and resistance band workouts. Strength training is important for the growing age as it helps maintain muscle mass. 

3. Flexibility Exercises: Flexibility exercises include stretching and practicing yoga. These physical activities improve in range of motion, reduce the risk of injury, and also help in the relaxation of muscle tension. 

4. High-Intensity Interval Training (HIIT): HIIT involves exercises of intense activity followed by periods of rest or lower-intensity workouts. This type of exercise is highly effective for improving fitness and burning calories in a short amount of time. 

Quick Read: International Olympic Day Essay

Should We Make Exercise a Habit?

Although we all know the benefits of exercise, many people still struggle to make it a regular part of their lives. To overcome this hurdle, here are some strategies that could help one make exercise a regular habit.

• Begin your workouts with goals that can be easily achieved. Doing 10 minutes of exercise a day is better than none. 
• Find activities that you enjoy. Doing exercise does not mean going to the gym. Dancing, hiking, or sports serve the same purpose that is counted as exercise.
• Schedule your exercise like any other important appointment in your daily schedule. Mark your calendar and stick to it.
• Find friends or a team to exercise with. Support of social groups increases one´s motivation and makes exercise more enjoyable.
• The market is full of fitness applications. Find a fitness app and wearable devices that help keep track of your progress and motivate you. 
• 75 to 150 minutes per week of aerobic exercise and 150 to 300 minutes of moderately intense aerobic activity help reduce the mortality of cardiovascular disease by 22% to 31%

Exercise is a powerful tool that not only helps one physically but mentally. Understanding the benefits of exercises, exploring the types of workouts, and developing strategies for doing regular aerobics helps enhance one´s well-being. 

Either go for a brisk walk or do a yoga session, find whatever works for you. Physical activity should be a joyful part of your daily life and trust that your body and mind will thank you for it. 

Also Read: Essay on Fitness

Ans: We all have physical fitness goals and every type of exercise can help us achieve our goals. Exercise keeps us healthy, strong, and energetic. Further, it improves one´s mood, helps in sleeping better, and reduces the risk of health diseases. 

Ans: Exercise improves focus and memory. Workouts help boost self-confidence and lessen the symptoms of anxiety and depression. 

Ans: Exercise strengthens one body, improves the health of the heart, and maintains a healthy weight. It increases energy, boosts flexibility, and strengthens the immune system.

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For more information on such interesting topics, visit our essay writing page and follow Leverage Edu.

Deepika Joshi

Deepika Joshi is an experienced content writer with expertise in creating educational and informative content. She has a year of experience writing content for speeches, essays, NCERT, study abroad and EdTech SaaS. Her strengths lie in conducting thorough research and ananlysis to provide accurate and up-to-date information to readers. She enjoys staying updated on new skills and knowledge, particulary in education domain. In her free time, she loves to read articles, and blogs with related to her field to further expand her expertise. In personal life, she loves creative writing and aspire to connect with innovative people who have fresh ideas to offer.

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I Study Homelessness. I Wish More Places Looked Like This Shelter.

By Matthew Desmond

Produced by Jillian Weinberger

In this audio essay, the sociologist Matthew Desmond interviews a resident of the Water Street Mission shelter in Lancaster, Pa., about what makes it so unique. “Here’s a place that is treating people in their full humanity,” Mr. Desmond says. “It’s looking past their hardships, past their addictions, past their homelessness to see people’s promise, to see people’s beauty. And wouldn’t it be amazing if that was the norm instead of the exception.”

Below is a lightly edited transcript of the interview. To listen to this piece, select the play button below.

Matthew Desmond: My name is Matthew Desmond. I’m a writer and a sociologist at Princeton University.

I research and report on poverty in America. That work has taken me to a number of homeless shelters across the United States. Shelters housed in decommissioned military bases, old hotels, church basements, you name it.

Homeless shelters are a vital part of the safety net. But they have a mixed reputation, I think it’s fair to say. Some are thought to be too strict, others too lenient. I wanted to hear from shelter residents themselves. So last year I visited Water Street Mission in Lancaster, Pa.

Water Street Mission is housed in an old cotton mill. It’s this kind of giant brick complex. There are places to sleep. But they also have family rooms. They have kids’ play spaces. And importantly, there’s a medical wing where people can receive medical care, psychological care and even dental care during their stay at Water Street.

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The world’s most liveable cities in 2024

Our sister company has rated the best, and worst, cities in which to live.

To read more of The Economist’s data journalism visit our  Graphic detail page.

H OW DO YOU measure liveability? EIU, our sister company, came up with a formula to help companies calculate hardship allowances when relocating their staff. The annual survey rates 173 cities across five categories: stability, health care, culture and environment, education, and infrastructure. Our map and charts below show how the cities compare this year.

Vienna took the top spot once again in 2024, earning the title of the most liveable city in the world for a third consecutive year. The Austrian capital received perfect scores in four of the index’s five categories, but a lack of major sporting events contributed to its lower tally of 93.5 out of 100 in the culture and environment category. (It is far from lacking in other forms of culture .) Three other European cities made the top five: Copenhagen, Zurich and Geneva. All three are notable for their modest population size, which tends to lead to lower crime rates and less crowded roads and public-transport systems. Two Canadian cities—Calgary and Vancouver—and four in Asia-Pacific—Melbourne, Sydney, Osaka and Auckland—complete the top ten (see map).

War-torn Damascus remains rooted to the bottom of the table. The Syrian capital has been the least liveable city in the index since 2013, and scored just 30.7 in 2024. Its stability score of 20 is tied with Karachi as the lowest of all the cities surveyed. Kyiv also performs badly in this category, pushing it into the bottom ten cities on the index for the second year in a row. Tel Aviv shares the same poor stability rating, and its scores on infrastructure and on culture and environment dropped by 7.2 and 6.7 points respectively amid the war in Gaza. The Israeli city fell 20 places down the ranking to 112th, the biggest movement in this year’s survey.

After a sharp drop and rebound over the covid years, globally the average liveability score increased by just 0.06 points over the past year, compared with 2.84 in the 12 months to June 2023 (see chart). Civil unrest troubled Europe, as French farmers blocked motorways into Paris and protests against immigration policies sprung up across the continent. Riots in Nouméa , in New Caledonia, and campus protests across America—which happened after the survey took place—do not bode well for next year’s index.

The cost-of-living crisis is also taking a toll. Although inflation is coming down in many countries, its effects, particularly on housing costs, are still being felt. The high prices are weighing on infrastructure scores, particularly in Australia and Canada. The quality of urban living may be at its highest in well over a decade, but not all are experiencing that equally. ■

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