Indian Economy

Importance of Knowledge of Economy

Hello Friends

Lay man does not understand the term “Economics”. They always think that it is a subject for economic professional. But the simple answer is the economics is the area which affects our everyday lives through important areas such as tax, interest rates, wealth, and inflation.
Economics provides the tools by which any one can study the costs, benefits and effects of government policies in a range of areas that affect society.

If we say that economics plays a role in our everyday life. Studying economics enables us to understand past, future and current models, and apply them to societies, governments, businesses and individuals.

What is economics?

To understand why the study of economics is important, we first need to understand what economics is.

As per the English Dictionary economics is the study of the way in which money, industry, and trade are organised in society.

Why is economics important?

Fimamcial inquiry into cause-and-effect relationships is key to influencing economic growth. Economists will look at risks and benefits on people, the job market and society as a whole when advising how to allocate resources.

Economics in real life
Applied economics is the term used to describe how economic theories can be applied to real-world situations. This looks at everything from costs and benefits to predicted human behaviour to make an informed decision.

Importance of studying economics
So, why do we study economics? Here are five reasons why studying economics is important.

1. Informs decisions
2. To understand the influences of every economic issues on the daily lives.
3. Impacts industries
Firms of all sizes and industries have to rely on economics,
4. Inspires business success
5. International perspective

Economics affects the world we live in. Understanding domestic and international perspectives – historic and current – can provide a useful insight into how different cultures and societies interact. For international corporations, understanding the world economy is key to driving success.

All the best for bright future.

Thanks

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