No doubt economics is the most prominent subject of
social science. It is a subject which sounds more practical than others
subjects of social science as it is basically concerned with the factors that
determine the production and consumption of goods and services. The ultimate
goal of economics is to serve the people and improve their living conditions in
their everyday life.
Branch of economics has been further classified into two
groups – microeconomics and macroeconomics.
Microeconomics deals with individual
aspect while the macroeconomics covers the economic
aspect as a whole.
In economics, we
learn, the fundamental problem of
economics. If the demand is greater than resources then what strategies we must
follow to solve these problems- it involves strategizing - what to produce, how
to produce, for whom to produce.
For the students who either want to manage a business or opt for services, a better understanding of economics will help
them to make good decisions based on the current economic state. Even choosing
economics after academics level, offers a variety of career opportunities –
Students also have an edge over their competitors in the finance and bank
related jobs, stock markets, health & insurance sector. They can also
become an economist. The role of an economist is also very important, they give
advice to the government on managing the economy
of the country, how to deal with problems like – inflation,
unemployment, overcoming market failure, the impact
of taxation on the economy etc.
Some of the
students think that economics is the subject which is just confined to
university level but its reach is very far we can observe this in our society.
Students can examine below some of the points to understand the significance of
economics:
Shortage of raw materials: A sound knowledge of economy
helps in pointing out the consequences of the
shortage of raw materials on the output and economy e.g. impact of the shortage of oil on the world.
Government intervention: ‘Privatization’ of various
sectors has been a subject of debate.
Economists help the government to point out to what extent government
should intervene in the private sectors to help
maintain a growth in the economy of the nation. The economists can
answer the questions like - should the privatization of electricity sector,
health sector, etc. be done?
Economics Forecast: Forecasting plays a vital role in
planning the things in advance. Whether it’s a weather forecasting or economic
forecasting, it helps us to get prepared
for the upcoming challenges. However, it is not a definitive science like
mathematics, but we can adopt an ideal approach in finding out the possible
outcomes.
Social inefficiency: Market failure is one of the best
examples of social inefficiency. It is necessary to establish the equilibrium
in the economy in order for it to function properly. Sometimes prices rise and move up to that level which is called
inflation, leading to an excess shortage
of demand in the market. Economists can a play important role in coming out
with planned strategy to help the government
to get rid of this nuisances.
Being one of the most scoring subjects, students should
pay heed towards this subject from the beginning of this session. They can take
resort of online platform CBSE study material for class 12 for best
practices.
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