I have been studying economics for five consecutive years now and have grown to realise that there are some common misconception’s surrounding what it means to study economics. Through speaking to friends and family members it has become clear to me that there is a common belief that economics is just a subject about money. Moreover, a subject which is only suited for individuals that want a career in the financial sector. I hope to offer an insight into economics, what it means to study economics, and the opportunities that result from it. What is economics? While economics is often associated with money and finance, according to the Financial Times journalist Tim Harford, economics permeates all aspects of our lives, and I would argue that this is closer to the truth. There is life beyond economics but with a globalised
What is economics?
While economics is often associated with money and finance, according to the Financial Times journalist Tim Harford, economics permeates all aspects of our lives, and I would argue that this is closer to the truth. There is life beyond economics but with a globalised world it is hard to foresee a day when we are not consumed by it. But if we are to accept that in its most fundamental form, economics is purely the study of economies; we must further ask ourselves what specifically defines an economy? The most intuitive answer may be that an economy is anything to do with money, however this is just the premise of our answer and far from the solution we seek. I am In agreement with the Cambridge economist ‘’Ha-Joon Chang’ that economics should not be defined in terms of its methodology, or theoretical approach, but it terms of its subject matter and this extends far beyond money. The subject matter of economics should unsurprisingly be the economy, and this involves money, work, technology, international trade, and anything involved with the way we produce goods and services, the income generated in the process and the consumption that takes place as a result of this process. As such we reach the conclusion that economics is both the process and overarching system we encounter in the production, distribution and consumption of goods and services. Whether you are a proprietary trader that buys and sells financial products on behalf of a bank, or a secondary school teacher, the economy and hence economics will have a part to play in your daily lives. Whether this is because economics underpins market movements and therefore your decision to buy or sell a financial asset. Or alternately because a countries economic performance determines the size of the government’s budget and as a result the amount that can be set aside for schools. There is a lot that falls under the umbrella of economics but more so its interconnection with society means it also has a role to play in politics, psychology, medicine and ultimately most segments of society. In an increasingly connected world, economics and its boundaries stretch far beyond finance. Fundamentally given the application economics has it is maybe less surprising that Tim Harford associates it with our everyday life. Economics and how it differs from business studies Another common misconception I have come across is that subjects such economics and business studies are extremely similar.
The subject matter of economics should unsurprisingly be the economy, and this involves money, work, technology, international trade, and anything involved with the way we produce goods and services, the income generated in the process and the consumption that takes place as a result of this process. As such we reach the conclusion that economics is both the process and overarching system we encounter in the production, distribution and consumption of goods and services. Whether you are a proprietary trader that buys and sells financial products on behalf of a bank, or a secondary school teacher, the economy and hence economics will have a part to play in your daily lives. Whether this is because economics underpins market movements and therefore your decision to buy or sell a financial asset. Or alternately because a countries economic performance determines the size of the government’s budget and as a result the amount that can be set aside for schools.
There is a lot that falls under the umbrella of economics but more so its interconnection with society means it also has a role to play in politics, psychology, medicine and ultimately most segments of society. In an increasingly connected world, economics and its boundaries stretch far beyond finance. Fundamentally given the application economics has it is maybe less surprising that Tim Harford associates it with our everyday life. Economics and how it differs from business studies Another common misconception I have come across is that subjects such economics and business studies are extremely similar. Yes, it is true that they often share the same department. However so do subjects such as Law and Sociology and yet while they too share similarities people generally find it easier to point out their differences. I think again this stems from the connotations of business and finance attached to economics. Of course there are similarities, after all it is largely private businesses that make up the world’s economy.
However as subjects they differ significantly and if you are someone who is considering studying either of these subjects at university I think it is important to be aware of the differences. Economics is a social science which explores theories and the mechanisms behind the economy, from both a national and individual level. In contrast business studies explores the different components that make up a business and how they are run. This may include modules such business law, business management, accounting, marketing and the opportunity to take up some economics but these are usually just introductory modules. Another important variation is the kind of mathematics involved. Economics is mathematically demanding, taking economics at a degree level requires you to not only understand relevant theories but also the maths that underpins them. It is therefore not surprising that most universities will require their students to have taken maths at A-level. Similarly business studies makes use of mathematics but in contrast places the emphasis on statistics and accounting. Economics features statistics but beyond this you are likely to encounter linear algebra, differentiation, integration, difference and differential equations and optimal control theory for example. I would therefore urge prospective students to consider the type of maths they enjoy when making a decision on what subject to pick. Economics: Career opportunities Studying Economics provides you with skills in understanding complex arguments, analysis of practical issues and of data, and effective communication. Skills that are valuable for many different types of careers. Many economic graduates go into finance, consultancy, government, or believe it or not some go
Economics: Career opportunities
Studying Economics provides you with skills in understanding complex arguments, analysis of practical issues and of data, and effective communication. Skills that are valuable for many different types of careers. Many economic graduates go into finance, consultancy, government, or believe it or not some go
Studying Economics provides you with skills in understanding complex arguments, analysis of practical issues and of data, and effective communication. Skills that are valuable for many different types of careers. Many economic graduates go into finance, consultancy, government, or believe it or not some go onto work as economists in industry. What is important here is that not all economics graduates go and work in finance and furthermore are definitely not limited to it.
by Alexander S, private Economics Tutor in London