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EconomicsIs Economics right for me?An understanding of Economics provides a student with a new way of approaching almost any problem. Perhaps the most valuable skill an economics student learns is how to think critically. The economic perspective enables students to understand virtually all things occurring in the business and political environments and to critically evaluate various options. Some students choose economics because it provides a solid business foundation and creates the breadth necessary to move into any of the more specific business fields such as finance or marketing after graduation. Others are interested in eventual political careers and want a better understanding of the overall economy and the possible impact of various government policies. Still others are interested in social work and creating a better world. Economics offers answers to tough societal questions we hear about on the news daily such as welfare reform, privatizing Social Security, campaign finance reform and potential government intervention in the prescription drug market. Often multiple solutions are presented, but students of Economics will have the skill set necessary to evaluate all of these options and form an intelligent opinion. Most schools allow Economics to count as a social science elective for virtually any major. Regardless of your ultimate choice of major, a course in economics will make you a better citizen and a more informed voter. If you truly enjoy problem solving, then Economics is an excellent choice for your major. What kind of jobs can I get after college?What can you do with an Economics degree? The skill set acquired by an Economics graduate is transferable to virtually any job. Economics is the study of how scarce resources are distributed in a society and both the business community and the government sector values that information. Management consulting, banking, financial securities and commodities brokers, and market research analysts are just a small sample of the job opportunities in the private sector. Economists often develop analytical models to help companies do such things as forecast product demand or determine the impact of the entry of a new competitor in their market. Gathering and analyzing data and providing concise information for business decision-making is the primary duty of a private sector Economist. Economists working for government agencies perform any number of tasks ranging from assessing employment trends to predicting overseas demand for U.S. agricultural products. A number of these positions require students to obtain graduate degrees in Economics or statistics. Economists are employed at every level in the government. What courses do I need to take?After taking the introductory courses in microeconomics and macroeconomics students will have the information necessary to make an informed decision about economics as a career. Additional economics courses include the History of Economic Thought, Econometrics, Labor Economics, Economics and the Environment, and Money and Banking. Students who find they enjoy the analytic aspect of the field will benefit from courses in Econometrics and additional quantitative courses such as calculus and statistics. Those desiring jobs in the academic profession will also find it beneficial to take a number of quantitative courses. Economists need to cultivate the ability to take massive amounts of data and information and present it in a clear and concise manner. For this reason, students will also benefit from courses in technical writing and business communications. Key Words-What is a Economics major expected to know?Every field has its own terminology and Economics is sometimes compared to learning a new language. However, a mastery of the language of Economics is required to understand today's global environment and by knowing that language, you can demonstrate your knowledge and expertise‹in a job interview, in the workplace, or in an online discussion with potential colleagues. A few of the most important key words in the field of Economics are presented here, to give you a head start on your future!
Economic perspective
Opportunity costs
Marginal analysis
Macroeconomics versus microeconomics
Core Skills: What is a Economics major expected to be good at?People are going to expect you to be able to do certain things well because you are an Economics major. These core skills should help you focus your course work and learning as you progress toward your degree. Taking the time to master these skills will allow you to excel at your chosen vocation as an Economist!
Think
Communication and writing
Analytical and quantitative skills
Creativity
The Voice of Experience Learn from seniors who have been down the road ahead of you. Here is one senior's candid reflection on life as a Economics major: I. Why did you choose your major?: Economics is the basis of everything. It is the foundation of how businesses operate and without a clear understanding of economics you can't fully understand the business world. 2. How did you decide on your second major or minor?: My minor is business administration and it was really a choice of convenience. Many of the course offerings in economics are cross-listed in business and count both for the major and minor. 3. How did this major meet your expectations?: It taught me to really understand how businesses run--especially in the free market since I am an international student from one of the former Soviet Republics and therefore a communist background. 4. What disappointed you about this major?: Nothing really with the exception of I thought it would be even more quantitative than it actually was. It is a quant-oriented discipline but also included a disproportionate amount of theoretical non-quant material. 5. What has challenged you the most about this major?: Understanding some of the more esoteric theoretical viewpoints was the most challenging but I think most of that stemmed from my background which differs significantly from most U.S. students. 6. How has this major prepared you to get a job that you'll love?: I'm not sure you ever really use a lot of this stuff in your real job. It provided me with a way to think about problem solving. 7. What do you know now, as a senior, that you wish someone had told you about this major three years ago? What advice would you give a student just entering this major?: Don't be afraid. It was not as difficult as I first thought it would be. If you are diligent and do your work you can obtain an Economics degree. Get Connected!To seek support for your college experiences, and to get a head start on your career, use these links to get connected by learning more about organizations in your discipline. By joining and participating in the professional conversation around the country, you can learn beyond the boundaries of your program. Many of these organizations offer scholarships and awards that can also help you to grow and succeed in your field of study! Student organizations Most of the professional organizations have student membership options available. In addition, universities typically have an Economics club or honor society available to Economics majors. For an example visit Northwestern University's web site and look at their Undergraduate Economics Society at http://www.econ.northwestern.edu/undergrad-frame.html Professional organizations American Economic Association
The purpose of the AEA is to encourage economic research and the perfect freedom of economic discussion. The AEA also issues a suite of publications on economic subjects. Student membership is possible. Also be sure to check out the Resources for Economists on the Internet discussed in the next section. It contains links to hundreds of professional economics associations. The sheer number and variety of organizations lets you know how flexible an Economics degree can be! Get Informed!It's a good idea to read more than what your teachers assign, and to branch out beyond the confines of your program. Many college students report that reading current magazines and journals related to their field helped them when it came time to look for a job after graduation. Every field has numerous publications that offer different perspectives and raise important issues. The links below offer a start on your own journey to get informed! Many of these publications offer discounts to students. Magazines and Trade Journals
The Economist
The Center for Economic Research
The Dismal Scientist
Research journals and Academic Publications Resources for Economists on the Internet
This site has links to everything from The Econometric Society to the National Economists Club. All the links are hot and there are far too many to list. Check it out for yourself! You may find some specialties you didn't know existed. Economics in Depth!This is the place to deepen your knowledge of the field. Whether you are a graduating senior, or still deciding if you want to major in Economics, you'll find here a more detailed overview of the field. What Is Economics?Economics is the formal study of resource allocation. By resources I mean all the inputs such as labor, raw materials and machinery used to produce a product. One formal definition is "Economics is the study of the allocation of scarce resources among competing ends." Fundamentally, economics is concerned with scarcity and how we make choices, either as a society or individual, that maximize our satisfaction. All resources are considered to be in limited supply or scarce and you often hear the phrase "there is no free lunch." Everything has a cost associated with it because those scarce resources utilized in the production process could have been used to produce something else. On a micro level that means we forego consuming one product in favor of another. For example, the decision to purchase a new house may preclude us from buying a new car. Economics helps us make those consumption decisions. On a macro level that means we forego possible government services, health care for example, in favor of spending our limited resources (tax dollars primarily) on other services such as welfare and education. Economics is the social science concerned with how we make those choices. History and BackgroundAdam Smith is considered by many to be the father of modern economic thought. In his book, The Wealth of Nations (1776), he noted that individuals functioning to maximize their own personal utility or satisfaction in a competitive market system simultaneously furthered the public good. This system, as though guided by an "invisible hand", functioned to promote the social best interest as well as the individual's best interest. Firms or individuals (micro), seeking to further their own self-interests, will ultimately use the least costly combination of scarce resources to produce their products. Behaving in a different manner would increase their costs and lower their profits, potentially driving them out of business. The competition of the free market system automatically forces individuals to behave in a manner consistent with the social best interest. The period from approximately 1770 to about 1930 is dominated by Classical Economics. Classical theorists, including John Stuart Mill and David Ricardo, believed that the free market system (competition) would ensure long-term full employment of an economy's resources. Say's law (named after French economist J.B. Say), stated that the act of producing goods generated an amount of income sufficient to purchase those goods. Therefore demand for product equals supply. Classical Economists suggested that any deviations from a full employment economy were short lived and the economy would self-correct its way back to full employment. The Great Depression of the 1930's tested that viewpoint. Economic output declined by 40% and one out four workers was unemployed. The economies of the world seemed caught in a never-ending recession. It was in this environment that John Maynard Keynes published his book the General Theory of Employment, Interest, and Money (1936) that attacked Classical theory. Keynesian economics maintains that economies do not always self regulate. Sometimes they require active government intervention to move them in one direction or another. All modern views of the economy, including Monetarism, New Classical and New Keynesian, are based on some component of either pure classical theory or pure Keynesian theory. Economics Today A large number of Economists today enter consulting fields. Businesses use these services to attempt to make sense out of the increasing complexity of our business environment. The global economy, predicted labor shortages, and the rapid pace of technological advances make it exponentially harder for firms to conduct their own in-house economic analysis. Today's student entering the field should be prepared to work in a number of different corporate settings developing and analyzing many different product and consumption trends. Gaining additional quantitative skills should continue to provide the student with a skill set that is in demand in the corporate world. The public sector Economist faces similar challenges as new government programs are constantly changed. What is the impact of a change in tax law? What is the impact of government provided health care? What is the impact of Social Security privatization? The list of questions is endless and new ones will be continually created as we advance. Students desiring a major in Economics should always find themselves in a career that challenges them mentally. Advice from a Economics Professor
Calvin Shipley
What can a student expect during the course of study? What are the characteristics of a successful student? What are some of the challenges facing this field? What makes this field exciting to you personally, and why do you love what you do? Links and ResourcesFollow these links to connect with a world of information about the field of Economics! National Association for Business Economics Economagic: Economic Time Series Page To get a better idea of what to expect in class, follow these links of sample course syllabi from colleges around the country.
www.ncat.edu/~simkinss/econ201/coursedocuments.html
www.ncat.edu/~simkinss/econlinks.html
Find out which schools offer great programs in Economics. Hundreds of schools offer fantastic programs in economics from Duke University to Western Illinois University. Check out the web page of the school you are interested in and evaluate from that point. Choice of school exemplifies the economic perspective. Think about the factors that dominate your search for the right school and you'll have your first conscious exercise in the Economic perspective! businessmajors.about.com/education/businessmajors/cs/economics/index.htm Further ResearchCheck out these sites to get a great head start on your next research project in Economics! |
