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Sunday, 1 May 2011

Importance of Economics or Role and significance of the study of economics

Today all over the world people have become highly economic minded. They have realized that the study of economics can provide them a solution to their economic and social problems. Today economics is more useful than any other branch of knowledge because it makes human welfare its direct and primary concern.

My. Durbin says "Economics is the intellectual religion of the days."

About the importance of economics Malthus says, "Political economy is perhaps the only science of which it may be said that the ignorance of it is not merely a derivation of good but produce great positive evil."
Following are the main advantages of the study of economics.

1. USEFUL FOR THE PRODUCER :-
Economics is very useful for the producer. It guides him that how he should combine the four factors of production and minimize the cost of production.

2. USEFUL FOR THE CONSUMER :-
The consumer can adjust his expenditure of various goods in better way if he knows the principles of economics. He will spend his income according the law of Equi-Marginal utility in order to get maximum satisfaction.

3. POVERTY AND DEVELOPMENT :-
It helps in removing the poverty from the country. Under developed countries are facing many problems like unemployment , over population low per capita income and low production. Economics is very useful in solving these problems.

4. USEFUL FOR THE LEADER :-
Its study is helpful for the leader5s to understand the economic problems if they have a knowledge of Economics.

5. USEFUL FOR THE FINANCE MINISTER :-
Finance minister prepares the yearly budget of the country. Economics guides him that how he should frame the tax policy and monetary policy.

6. USEFUL FOR THE DISTRIBUTION OF NATIONAL INCOME :-
From the study of economics one can easily judge that how the income should be distributed among the four factors of production. For this purpose Marginal productivity theory is suggested by economics.

7. CULTURAL VALUE :-
A person's education can not be considered complete unless he has some knowledge of economics. The thing which happen daily around us have an important economic bearing. So there is also the cultural value of the study of economics.

8. IMPORTANCE FOR A COMMON MAN :-
The study of economics is very useful for every citizen. It enables him to understand and criticize the economic policies of the government. He can also guide the government.

9. ECONOMIC PLANNING :-
In the modern age the importance of economic planning can not be ignored. Through planning we can utilize our natural resources in better way and can improve our economic condition.

10. IMPORTANCE FOR LABOUR :-
It guides the workers that how they can get maximum wages from the employer. It enables them to get the right of trade union , collective bargaining and fixation of working hours.

11. SOLUTION FOR ECONOMIC CRISES :-
It guides the nations that how they can save themselves from the economic crises. The advanced countries desire is that there should be economic stability and full employment without inflation to achieve these objectives, economics is very useful for them.

12. INSPIRES FOR DEVELOPMENT :-
The study of advanced countries economy inspires the less development countries that they can also improve their economics conditions.

13. INTELLECTUAL VALUE :-
Economics has great intellectual value, because it broadens our out-look, sharpens our intellect and inculcate in us the habit of balanced thinking.

14. OPTIMUM USE OF RESOURCES :-
In the third world countries there is a lot of wastage of resources which is the main cause of their poverty. The study of economic development will enable them to make the optimum use of their resources.

15. CREATES THE SENSE OF RESPONSIBILITY :-
Economics develop the sense of responsibility among the citizens by explaining the various problems and their solutions.

16. USEFUL FOR INTERNATIONAL TRADE :-
Its study is very useful for international trade. It helps the importers and exporters to earn maximum profit. A businessman can easily understand the trade policies of various countries.

1 comments:

Leslie Lim 18 July 2014 at 00:50  

Great Resource and great site/engine.

Bom
www.imarksweb.orgsa

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