So, are many of you running to get college degrees in Economics and why not? It is one of the most lucrative subjects to study. Economics is a much in-demand subject for graduates as well as post-graduate studies, anyone will admit that.
Coming down to the main fact – What is Economics?
It can be defined in a number of ways. It is the study of scarcity, the study of utilization of resources, and many more. Many of you might be thinking, that is only involves money. However, it is not the case. Economics also deals with other disciplines, like trends, census, predictions and forecasting. Then, there are further divisions, like micro-economics and macro-economics.
Academically describing Economics will not be much difficult. Some say is a hard science that bankers utilize to make money. It involves a little bit of politics and accounting. Ancient people described it, as the science of wealth.
So, are you thinking, what you have got to do with economics, right. There are various roles that economists play, in our day to day life, world decisions and as professionals.
How are Economists solving world problems, through Economics?
Economics is a multi-disciplinary subject that draws ideas from multiple subjects. They will generally solve problems, by:
- Abstraction, i.e. breaking down a problem into its components.
- A close second comes Analysis. It deals with the observation of old data, the scenarios and decisions are based on that.
- Correction is the method to remove bad decisions and make corrections of policies, based on those.
You can surely find Economists, in various high-end positions in Government as well as MNCs. You will find them in the advising panel of various presidents, where they will be advising on the country’s economic issues, formulation of various monetary policies for World Bank, analyzing economic conditions of various financial organizations, investment banks and real estate. They are also responsible for formulating policies in healthcare, schools and social sector.
The study of Economics, can equip you with a tool to tackle problems in everyday life. You can take decisions, about financial investments, careers and wages. Students of Economics are equipped with knowledge of handling daily problems, have analytical skills and also have problem-solving capabilities, more than students of other disciplines.
The field is very wide and the principles can be applied to varied careers and problems. The subjects develop one with transferable skills, that can be used in any industry, financial, banking, investments, government agencies and many more places. Economics graduates also tend to earn in multiple figures. It has got a multi-disciplinary strength, which few other subjects have. Economics is a power in its own right.
A General Course Year in Economics
The first year at the university is a general one. This year builds a solid foundation for student. The first year module includes introduction to microeconomics, introductory macroeconomics and quantitative methods of economics. The basic concepts, taught during this time will be of immense utility throughout the course degree. Students can specialize in developmental economics, managerial economics, labor economics and monetary economics.
Students studying Economics courses, need to put in 10-15 hours of contact classes with the presence of lectures, seminars and workshops. 20 hours of minimum study is what people look for. Independent study is an important part of studying economics.
Do you think, you will enjoy?
Economics is that perfect subject, in which you will find a perfect combination of numbers, definitions, words, calculations and interpretations. Students, get the chance to make real-life models and then to criticize these models, based on assumptions. Students enjoy economics, as it allows them to develop analytical and evaluative skills.
How do you think, you will manage to study Economics at university and at what level?
You need to study math at A level, to be able to grasp the concepts of economics. Quantitative modules in Economics require a very strong grasp over the subject. Some universities, look for backgrounds in Accounting or Physics. Students are encouraged to study general affairs and world affairs, if they want to study economics.
You must be thinking, how can someone without the above backgrounds can study economics. One way, a penchant for studying the subject can be developed through work experience. First and foremost, if you intend to study economic, you need to read through important journals and newspapers. You can also subscribe to The Economist. This will enable students, to write their first essay in Economics class.
Now, to further get into the subject, you need to study first year math textbooks, study a little bit of statistics and practice on various problems and their solutions. Statistics is important for students to understand the subjects such as econometrics. You also need to know, the basics of the set theory, gradients, Theorems and their application, optimization. Students studying economics, need to have a basic understanding of math in general. The allocation of resources, as in economics require a firm foundation in math. The field of economics has numerous math riddles and problems.
Utility of Mathematics in Economic
It is used in Decision-Making. Economists are hired to find out the risk or outcome of an event. Probability functions are used, to determine odds against evens. For e.g. in hospitals, through economies calculations and theorems, the rates of survival are found out in normal and C-section birth. The decision is economic in the long run, saving hospitals a number of hassles, litigation and court cases.
Saving Money is another important sphere. Profit maximization graphs are being used to find out numerous utilities, that can save money for the company and the economy as a whole.
Long – term success rates of various initiatives are derived from laws in Economics.
If you are of the analytical and inquisitive type, by now you have already decided regarding your economics career. It is indeed a good choice for your, to pursue. A degree in economics can be used in many spheres. You can use it to study and analyze economic trends, market trends and labor markets. You can also work for individual companies and as well as government agencies.
Skills to gather data, organize data and interpret data are easier by studying economics. Economists also create various models to predict and forecast trends. Students who pursue economics are masters at charts and graphs. Let us look at the top jobs in the sector for economists.
Market Research Analyst
Market research analysts, study market trends over a period of time and make decisions. The decisions include assessing how various products might perform in the market, in specific demographics and otherwise. They are well-trained to design strategies to gather data, study them and come out with an analysis which is profitable for the company. They then produce the information, to the clients. Graphical representation data, graphs and charts are also part and parcel of the role.
Compensation managers are entrusted with the duty to analyze salaries for specific roles in the market. They study the labor market trends and fix salary components. They study pay and benefits structure of various companies and create competitive salary structure for the staff members, in the company they work for. If you are worrying about the salary part, it is really good. These managers make anywhere around $ 1, 30, 010 annually.
These people research on various companies, industries, Investment Avenue of the companies. They require advanced quantitative analysis skills for performing this work. They very often use computer softwares and models to analyze the reports. In accounting and auditing services, they play a very important role. Cash reconciliations, payment accounting, daily analysis, ledger accounting and reporting is all part and parcel of the job.
These people research and analyze various circumstances that have universal impact. They then advise on a case basis to different legislation and government policies. Economy knowledge is extremely important for this role. International trade policies, healthcare policies and taxes come under the purview of this analysis. You need to inculcate strong writing skills alongside, to succeed in this kind of job.
This is another career option, worth mention. Lawyers critically think on various issues and analyze them, and try the cases in court. There are various laws, like corporate law, anti-trust law, personal cases, that come under the case. Researching and writing skills are of prime importance over here. They must also have the ability to present cases in front another competent opponent or lawyer and the judge. Proving innocence of companies in money laundering cases is also an example of how such cases can be. They need to be very vigilant.
Consultancy is another thriving job sector in today’s world. Management Consultants analyze businesses, their needs, and supposed problems. You can start out, after graduating in research analysis, junior consultant level and other positions and move up the ladder, with time. The majors in economics provide excellent support to pursue such careers. Public speaking and writing skills also come handy, in these profiles. You might need to analyze and then write lengthy reports. Salaries are quite good in the of $1, 00,000 and above. It is a very competitive field and worth your attention, we can vouch for that.
Now, you ought to know, how successful reporters and made and not born, always. These reporters research, broadcast, write various stories. They study industry trends, economic developments, and financial market and keep tab on the market economy. They are ever ready to produce excerpts on current conditions and monetary trends.
Business Manager in NGOs
NGOs rarely know how to function. They are forever running short of money. You can manage their funds for them. They are dedicated to a specific goal that they are built for. So, you as a a manager will try to keep operating costs low and concentrate on the final product – the service for which you exist. You will need strong organizational skills, communication skills and strong knowledge of the industry you are in.
So, Let us quickly wrap it up with a summary of skills you need for these various jobs in economics domain.
- You need analytical skills. You can learn these from real-life scenarios as well as model scenarios. Get ready to research a lot, analyze most situations that come your way and then experiment. Fin out the repercussions of your decisions.
- Critical Thinking is an important skill that you need to master. You need to develop a critical eye for detail. Try to find the underlying cause of any situation; do not believe in superficial details. Understand what lies beneath various transactions that are taking place.
- Mathematics, yes heard it right. You need to get yourself mathematically inclined. You will be dealing with numb after all. Statistics, calculus and other advanced level mathematics need to be incorporated into your daily lifestyle. It will help you to gain entry in bottom domain and you can work it up later on.
- English Language communication. It is extremely important to have mastery over this language. The world over speaks this language, so you need it to survive in the market. You do not need to follow Shakespeare, however you need to at least understand and convey what all is being said. Apart from speaking, you need to write well.
- Software Knowledge – Get some training on the various kinds of software, economists use. Excel is one of them, Most mathematical calculations are done on excel, so learn it thoroughly. It will take you a long way. Get automated with Python, another computer language. Economists are using it nowadays.
So, with so many options and avenues open in front of you, anyone will love to be an Economist now. You just need to think clearly!
Evelyn W. Minnick is a teacher at one of the respected academic institutions and also a professional writer on many education sites. She has 6 years of work experience, having done her MBA from the prestigious Stanford University. She is a master in Economic and is ready to share her knowledge with all of us.