What Is the Importance of Economics?

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Economics and economic education are important for providing people with valuable insight into how foreign and domestic markets operate, which allows them to make reasoned and rational choices for short-term and long-term financial benefits. Studying economics also allows people to learn how to manage and most effectively use scare and finite resources such as time and money. Studying economics equips people with varying levels of financial literacy, which allows them to effectively manage their own finances and even advise others in financial management and planning, too.

Studying how markets operate allows people to understand basic financial concepts, such as supply and demand, as well as more intricate and complex financial transactions. In addition to gaining financial literacy, the study of economics equips people with educational and cognitive skills, such as the ability to make reasoned and rational decisions, which are valuable in other areas of their personal and professional lives too. The decision-making skills acquired by studying economics, for instance, are also valuable for helping people make other decisions, such as whether or not to support public policies. While some individuals who study economics use their knowledge for personal benefits, others enter into professions, such as banking and market analysis, which help others learn to manage their finances.