Have you ever wondered why economics classes are important academic courses within the U.S. education system? There are so many essential things one can do with an economics degree from a professional and personal prospect. This is because economics is a significant driving force behind mundane aspects of everyday life, like cost of living, taxes, interest rates, and wealth management (Marshall et al., 2023). In learning economics, American universities encourage their students to apply the methods and theories learned to real-life situations, such as analyzing mathematical formulas to forecast personal finance. Consequently, obtaining an economics qualification can be essential in enabling learners acquire analytical and problem-solving skills and the business savvy required to succeed professionally.
Importance of Economic Classes:
In order to make sound financial investment decisions, studying economics can be a primary motivating factor, as economic decisions can have lasting consequences that can significantly impact financial plans. Therefore, economic literacy is crucial in enabling individuals acquire relevant financial knowledge. Besides, life presents varying circumstances; some may be good while others undesirable, so studying economics is significant for decision-making. For instance, after a job loss or during lockdown measures, economics knowledge can spur proactive preparation for such emergencies based the financial implications. It also allows individuals to make financial decisions that help them accomplish their goals, like saving up to purchase a car or property.
Since economics is everywhere, it plays a significant role in shaping public policies. We have all observed that corporations make more profits if the economy is performing adequately. In such a scenario, government policies will focus on increasing taxes to collect more revenue (Jones & Tonetti, 2020). However, if the economy is in recession, public policies emphasize cushioning businesses through tax breaks. Notably, economics is also associated with various career paths like data analyst, financial risk analyst, financial advisor, investment analyst, and more. Real-world applications of economic principles include the opportunity cost, which espouses that resources are scarce and limited, hence we would rather spend the money on food than other goods like entertainment if we have a limited budget.
Branches of Economics:
Economics has two major branches; microeconomics and macroeconomics. Microeconomics is concerned with how individual consumers and businesses make decisions concerned with production and allocation of resources. In addition, microeconomics also describes the structure of corporations and the risk and uncertainty on the decision-making process. The theory is within the framework of supply and demand dynamics, as it describes the costs of producing goods and services, and the division and allocation of labor. Microeconomics is further divided into neoclassical, environmental, behavioral, development, economics and labor economics.
On the contrary, macroeconomics deals with the behavior and performance of a nation’s economy as a whole. It emphasizes on recurring economic cycles and wider economic growth and development. It also emphasizes on foreign trade, government fiscal and monetary policies, inflation, interest rates, and recessions. Macroeconomics is further divided into classical, Keynesian, monetarist, Austrian and Marxist economics.
Difficulty of Economic Classes:
Economics classes might be challenging for learners as it entails complex theoretical frameworks that are not easy to understand. These frameworks involve a set of ideas and principles that explain how various economies function. These theories include Marxism, market socialism, Keynesian economics and more. Another challenge in economics classes is its mathematical and statistical components. These two components alongside other methods and techniques, like data harvesting and computer algorithms are essential in economics and are useful for prediction, analysis and projection (Jhingan, 2022). Some mathematical and statistical components include algebra, calculus and probability. Despite being complex, effective study methods can help students to be better at economics and ultimately pass economic class.
These study methods such as using economics practice questions can help students master the mathematical analysis skills required for their level of study which can be attained by from economics test banks, reading textbooks, taking practice exercises and using software tools, like Excel and MATLAB, to help with data manipulation and modelling.
In order for one to become an excellent economics student, they must read relevant textbooks in particular areas of study to help them gain insight into the concepts of economics. For this reason, I have recommended some textbooks.
- “Principles of Economics” by Openstax because it entails the scope and sequence of many introductory economics concepts.The textbook utilizes conversational language and simple demonstrations to explore economic theories, and offers several examples utilizing fictional and real-world scenarios. The book can be downloaded for free from Openstax website.
- “Macroeconomics” by Charles Jones. The book teaches students to think like modern macroeconomists, with engaging growth coverage and an intuitive approach to models. I recommend it because of its concise explanations, flexible organization and emphasis on problem solving.
- “Principle of Economics” by Drik Mateer because it clearly explains the principles of economics, allocation of scarce resources and how to use marginal reasoning when making decisions.
- “Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to know” By David Moss. Published by Harvard, This brief text is crucial for learners as it explores important concepts in macroeconomics in easy and simple way.
It is worth noting that practice tests, quizzes, and test banks for all books above are available at Exam-Banks.com’s test bank shop
In summary, you will never regret undertaking Economics classes because they give one insight into wealth management, making effective financial decisions and how to achieve financial goals. Understanding the economic theories and models also helps to budget finances by making predictions and current economic matters. Economics classes may be complex but can be grasped well by students especially through developing interest, using effective study methods and consistently practicing. Reading the recommended books will help to gain better understanding of the discipline.
Jhingan, M. L. (2022). The economics of development and planning. Vrinda Publications (P) Ltd..
Jones, C. I., & Tonetti, C. (2020). Nonrivalry and the Economics of Data. American Economic Review, 110(9), 2819-2858.
Marshall, M. P., & Marshall, A. (2023). The economics of industry. In Women’s Economic Writing in the Nineteenth Century (pp. 94-107). Routledge.