What is the importance /advantages/ objectives of the study of economics?
The Importance /Advantages/ Objectives of the study of Economics are mentioned below:
The Importance /Advantages/ Objectives of the study of Economics are mentioned below:
(1) Intellectual Value:
The knowledge of Economics is very
useful as it broadens our outlook, sharpens our intellect, and inculcates in us
the habit of balanced thinking.
The study of Economics makes us
realize that we as human beings are dependent upon one another for our daily
needs. This feeling creates in us the intelligent appreciation of our position
and the spirit of co-operation with others.
(2) Practical
Advantages:
The practical advantages of
Economics are much more important than its theoretical advantages. These
advantages can be looked at from the individual and community point of view.
(3) Personal Stake in Economics:
From personal point of view, the
study of Economics is useful as it enables each of us to understand better and
appreciate more intelligently the nature and significance of our money earning
and money spending activities. With the knowledge of Economics, the consumer
can better adjust his expenditure to his income.
The study of Economics is also
useful to a producer. It suggests him the ways of bringing about the most
economical combinations of the various factors of production at his disposal.
It also helps in solving the various intricacies of exchange.
From the study of Economics, one can
easily judge as to why the prices have risen or fallen. The knowledge of
Economics also explains us as to how the reward of various factors of
production is determined.
Thus, we find that every individual
can rightly hope to become a better and more efficient consumer, producer and
businessman, if he has the working knowledge of economics.
(4) Economics for the Leader:
The study of economics is not only
helpful from the individual point of view but it is also very useful for the
welfare of the community. It enables a statesman to understand and better grasp
the economic and social problems facing the country.
Every government has to tackle
different kinds of economic problems such as unemployment, inflation,
over-production, under-production, imposition of tariffs and control, problem
of monopolies, etc. The statesmen can successfully solve these problems, if he
has thorough knowledge of the subject of Economics.
The knowledge of Economics for a
finance minister is also indispensable. He has to raise revenue by imposing
taxes on the incomes of the people for meeting the necessary expenditure of the
government. Economics here comes to his rescue and guides him as to how the
taxes could be levied and collected.
(5) Poverty and Development:
The greatest advantage of Economics
is that it helps in removing traces of poverty from the country.
Take the case of Bangladesh; we in
Bangladesh are confronted with different kinds of problems. For example,
low-per capita income, low productivity of agriculture, slow development of
industries, fast increase in population, under-developed means of communication
and transport, etc.
The study of Economics helps in
devising ways and means and suggesting practical measures in solving these
problems.
(6) Economics for the citizen:
(6) Economics for the citizen:
Such being, the importance of study of
Economics, it is rightly remarked by Wooten that “you cannot be in
real sense a citizen unless you are also in some degree an economist”. He
is perfectly right in giving the statement.
The world is so fast changing that
we are completely now living in a world dominated by economic forces and
economic ideas.
If the people of any country do not
have the working knowledge of an economic system, then the government of
that country can easily hoodwink their citizens.
On the contrary, if the citizens
have proper knowledge of economics, the government will be very vigilant and
spend the money in a wise manner.
The importance of the study of
Economies can also be judged from this fact that the daily newspapers cannot be
understood without some knowledge of Economics. The newspapers often describe
complicated economic problems such as inflation, balance of payment, balance of
trade, imperfect markets, dumping, co-operative farming, sub-division and
fragmentation of holdings, mechanization of agriculture, If you do not have
working knowledge of Economics, you cannot understand these diverse problems.
From the above brief discussion, we conclude that the knowledge of Economics is very useful. As such it is necessary that every citizen, worker, administrator, consumer, etc., should have at least working knowledge of it.
In the words of Sir Henry Clay:
“Some study of Economics is at
one a practical necessity and a normal obligation”.