Definition of Economics

General meaning of economics

Economics is a social science which studies how societies allocate scarce resources in production of goods and services to satisfy their needs.

Importance of studying economics

1. It helps to build up a body of principle and furnish the economist with lots of economic analysing that will enable students to understand current economic problem and to see the economics consequence of pursuing a particular time of policy.
2. It helps in interpreting economic issues arising from government and non-government policies.
3. It helps in managing personal life and that of the society.
4. It helps to distinguish various economic systems such as capitalist, socialist and mixed economy.
5. It explains economic theories and shows how they apply to a particular economy. Economic theories are simplified representation of the real world that we use to understand, explain and predict economic phenomena in the real world. They can be in the form of statements or graphs.
6. It helps in discussion and analysis of international economic issues and dealings.
7. It helps students to use the terminologies, language and symbolism of the subject clearly and communicate economic ideals.