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What is Economics?

The American Heritage Dictionary defines economics as the social science that deals with the production, distribution, and consumption of goods and services, with the theory and management of economies or economic systems. Classic economics concentrates on how people choose to use their scarce resources (supply) in an attempt to satisfy their unlimited wants (demand). Macroeconomics studies a nation or the world's economy as a whole, using data about unemployment, inflation and industrial production to understand the past and predict the future. Microeconomics studies the behavior of specific sectors of the economy, such as industries, companies or households. Economics, in general, builds scientific models to explain human behavior in relation to work, production, distribution, consumption and the fundamental operations of most businesses.And economists use these models, combined with their observations of the world, to analyze, critically solve complex problems and explain why things happen the way they do.

Economics Degree

A degree in economics will teach students the valuable skills, problem-solving techniques and economic principles and knowledge to succeed in a variety of related fields. The courses that students take will depend on the career specialty they choose to pursue. Unlike finance degree programs, which focus primarily on monetary resources, economics degree programs address more diverse resources, such as labor, land, machinery and raw materials. Graduate degrees include many specialties within economics, including advanced economic theory, international economics and labor economics. Economics majors have also learned to enhance their performance in managerial decision making by taking courses in demand theory and estimation, production and cost theory, analysis of market structure, antitrust policy, government regulation of business, capital budgeting, inflation, unemployment, determination of interest rates, and international economics. Economists with an advanced degree typically have better promotion opportunities and earn, on average, high salaries. According to the Bureau of Labor Statistics, the salaries for professionals in the field of economics average about $72,780. Data shows that economics majors have higher earning potential than other business or social science majors.

Career Opportunities in Economics

Graduates can apply their Economics degree to a variety of career fields including academia, government, sports, recreation, entertainment, technology and all facets of the business world, including banking, manufacturing, mining, insurance, and retailing. There are three general categories of economists: business economists, government economists and academic economists. Each type of economist applies the economic approach to decision making in a different setting. Business economists analyze data and provide information so that the manager can use this information to make decisions. Business economists typically work in manufacturing, mining, insurance, transportation, communications, banking, retailing, investment, trade associations or consulting organizations. Government Economists are hired by federal, state and local governments and serve in a wide variety of positions involving analysis and policy making. Academic economists are graduates that teach high school or college economics. Often, an advanced degree, whether a master's or doctoral degree or a teaching certificate, is needed to become a government or academic economist.