Question

why economics is important? give about 300 words

Answer 1

Economics is the crucial thing you get to learn how economies, states, businesses, households and individuals are allocating their scarce resources. The economics can also provide useful insight in day-to-day decision taking. Economics is concerned with optimizing resource distribution within society. The focus includes understanding what is happening in markets and the macroeconomy, analyzing statistics on the state of the economy and describing their importance, understanding various policy options and determining their possible outcomes

Economists are well known to advise the president and congress on economic issues, formulate policies at the Federal Reserve Bank, and analyze economic conditions for investment banks, brokerage houses, real estate firms, and other private sector enterprises. They also contribute to many other public initiatives including health care , education, and school reform as well as attempts to reduce inequality, pollution, and crime.

Economics provides a mechanism for investigating possible impacts as we run short of raw materials such as gas and oil. A critical economic divide is to what extent the government should intervene in the economy. For example – should the government provide free health care at the point of use or encouraging private health care is more effective. The free market provides several instances of consumer failure. One of the best economical uses is to provide solutions to overcome market failure. One of economists' main jobs is understanding what's going on in the economy and investigating the reasons for poverty , unemployment and low economic growth.

The economic predictions are easier to grasp than the current situation. Although forecasts aren't always accurate, however, they can help give decision-makers an idea of potential outcomes. Economics isn't like mathematics a conclusive method. It's impossible to be definitive about outcomes because of many unknown variables, but a good economist will be aware that the outcome depends on different variables, and there are different potential outcomes. That should help to avoid a too ideological approach. Modern economists have looked at the economic forces behind everyday social questions

The economic predictions are easier to grasp than the current situation. Although forecasts aren't always accurate, however, they can help give decision-makers an idea of potential outcomes. The UK, for example , made a vote in 2003 about whether to join the Euro. Many economists suggested that Britain might be struggling with a common monetary policy. With the UK in, the Euro was not an optimal currency zone. That analysis was a factor that decided not to join in the UK government. The analysis in retrospect undervalued the cost of the euro. But, had it been taken for purely political reasons, the UK might have joined.

Economics isn't like mathematics a conclusive method. It's impossible to be definitive about outcomes because of many unknown variables, but a good economist will be aware that the outcome depends on different variables, and there are different potential outcomes. That should help to avoid a too ideological approach. For example, a government may have the philosophy of "free markets are always best," but an economist would be aware of a more nuanced view that government intervention can overcome market failure and improve welfare in some markets, such as health care, transportation, etc. But, at the same time, it doesn't necessarily mean that State interference is best.