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Why Economics Is Important Essay

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Economics originated from the Greek term oikonomus which means “one who manages a household”. The limited resources available to the family are being allocated among its members taking into account the needs, priorities, and abilities of each member. The workings of the household are also happening on the bigger scale, the society as a whole. How society uses its resources to produce goods and services, the market behavior, employment, trading, savings, economic policies, government programs, are part of the study of economics.

Some definitions of economics are as follows:

Adam Smith (5 June 1723 – 17 July 1790) – Economics is a science of wealth where wealth means goods and services transacted with money. He also identified the four aspects of wealth: 1) Production of wealth or how goods and services are …show more content…

Importance of Economics Why do we need to study economics?

1. Economics is a science of choices. Studying economics can improve your decision-making skills enabling you to make better decisions.
2. Economics uses logical and evidence-based approach in analyzing problems. Studying economics can develop your qualitative and quantitative skills and improve your critical-thinking skills.
3. Economics deals with people. Studying economics is vital on your study of the complex society where you belong and your interactions and relationships with other people.
4. Equipped with a knowledge of the economics tools and principles, you can gain a better understanding of the current issues, whether local, national, and global and view the issue/s with objectivity.

C. Economics and other Social Sciences

Science which came from the Latin word scientia meaning "knowledge" refers to any systematic knowledge or practice acquired through scientific method and research.
Economics is classified as a social science which deals with a study of human behavior and interactions, whether individually or in groups. How does economics relate to other

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