Studying Economics helps to gain lifelong skills in understanding and analyzing microeconomic and macroeconomic models using data to solve real-world issues.
Aims of studying Economics
Precisely, you will be able to:
- Master the fundamentals. Develop a critical understanding of core economic theories, models, and analytical tools employed in microeconomics, macroeconomics, and the global economic landscape. Explore the concept of material well-being and its connection to the availability of goods and services, highlighting the emphasis on economic growth and efficiency in many societies.
- Bridge theory and practice. Leverage your acquired economic knowledge to analyze real-world economic challenges and issues faced by individuals and societies. Apply economic theories, models, and data analysis techniques to gain deeper insights and engage meaningfully in economic discourse.
- Navigate complex choices: Delve into the decision-making processes of individuals and societies, uncovering the economic choices, interactions, and consequential outcomes that shape their well-being. Recognize the positive and negative ramifications associated with economic decisions made by various actors, including consumers, businesses, and governments.
- Embrace global challenges. Grasp the critical issues surrounding environmental impact and equitable access to resources, goods, and services within the ever-evolving global economic context. Analyze the interplay between private and public sectors, represented by consumers, businesses, and governments, respectively.
- Evaluate intervention. Develop the capacity to critically assess the role of government intervention in regulating private sector activity. Understand the need to balance market forces with strategic government intervention for optimal economic outcomes.
Topics in Economics
Studying economics encompasses a wide range of topics including:
1. Microeconomics – The building blocks
The study of individual and business decisions, and how those decisions affect markets. It focuses on how prices are determined, how much of a good or service is produced, and how resources are allocated.
a. Market dynamics. Explore the fundamental concepts of demand and supply, analyzing how they interact to establish equilibrium within competitive markets. Critically evaluate the assumptions of maximizing behavior by consumers and producers, recognizing the limitations of these models. Delve into the concept of elasticity, understanding how responsiveness to price changes shapes market dynamics. Examine the role of government intervention in microeconomics, exploring instances where market failures necessitate corrective measures.
b. Market imperfections: Uncover the complexities of market failures arising from externalities and common pool resources, where traditional market mechanisms struggle to allocate resources efficiently. Analyze the challenges associated with public goods, which exhibit non-rivalry and non-excludability, requiring alternative solutions for provision.
2. Macroeconomics – The big picture
The study of the economy as a whole. It focuses on issues such as inflation, unemployment, and economic growth.
a. Gauging Economic Performance: Master the tools and techniques for measuring economic activity, including GDP and unemployment rates, and gain insights into the factors that cause fluctuations in these key indicators. Analyze the interplay between aggregate demand and aggregate supply, understanding how their interactions influence economic outcomes.
b. Policy and Prosperity: Explore the core macroeconomic objectives of economic growth, price stability, full employment, and equitable distribution of income. Delve into the economics of inequality and poverty, examining the factors that contribute to these disparities and potential policy interventions to address them. Analyze the tools of demand-side management, including monetary and fiscal policy, and assess their effectiveness in influencing economic activity. Evaluate the potential of supply-side policies to promote economic growth and long-term prosperity.
3. Global economy – The global arena for interconnectedness and challenges.
The international economy is the interconnectedness of the world’s economies. It is influenced by factors such as international trade, foreign investment, and exchange rates.
a. Unlocking the Benefits of Trade: Discover the advantages of international trade, including increased efficiency, specialization, and access to a wider variety of goods and services. Analyze the different types of trade protection measures employed by governments and the arguments for and against such interventions.
b. Navigating the Globalized Landscape: Explore the concept of economic integration, examining various forms of regional cooperation and their potential benefits and drawbacks. Gain insights into the dynamics of exchange rates and balance of payments, understanding their impact on international trade and investment flows.
c. Striving for a Sustainable Future: Recognize the critical role of sustainability and equity in the global economy. Analyze the challenges associated with achieving sustainable development and explore potential strategies for promoting economic growth while safeguarding environmental resources and ensuring equitable distribution of benefits.
Skills in Economics
Students will be able to master a range of skills including:
- Knowledge. Gain a solid grasp of core economic concepts, current issues, and data while appreciating the strengths and limitations of economic models.
- Application & Analysis. Apply economic principles to real-world scenarios, interpret data effectively and analyze the use of economic information in various contexts.
- Evaluation. Critically examine economic concepts and theories, construct arguments using economic examples, and evaluate information and theories effectively.
- Communication. Produce well-structured written work incorporating economic terminology, utilize diagrams for clear explanations, and interpret data sets and news media extracts.
- Quantitative Skills. Employ quantitative techniques to identify, explain and analyze economic relationships.
After studying the main topics in Economics, you will be able to focus on the real-world issues (scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence and intervention) while developing the knowledge, skills, values and attitudes that will encourage you to act responsibly as a global citizen.
