Importance of the study of Economics: The Importance /advantages/ Objectives of the study of economics are as under:
(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 statesman 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 Pakistan; we in Pakistan 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: 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
citizens have knowledge of Economics, then 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.