(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.
From
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”.