In today’s complex and interconnected world, understanding economic principles is essential for making informed decisions and navigating global challenges. Economics provides a critical framework for analyzing global challenges such as inflation and unemployment, international trade, environmental sustainability, and income inequality. This discipline is grounded in developing solutions that drive sustainable growth and improve societal well-being.
Table of Contents
- What is Economics?
- Reasons to Study Economics
- Economic Systems
- Careers Paths with a Degree in Economics
- The Role of Economics in Global Issues
- Foundation for Graduate School
- Study Economics at NU
It’s easy to see why the study of economics opens the door to exciting opportunities. It equips you with analytical and problem-solving skills that are applicable across all major industries, from finance and government to international agencies and academia. An economics education also illuminates diverse career paths and gives you the tools needed to make a positive impact in various professional roles.
Studying economics equips you with the tools to understand the world around you and play a significant role in shaping its future. Let’s explore what an economics education involves and how it can prepare you for success.
What is Economics?
Economics is the study of how societies make choices under conditions of scarcity. It’s about understanding the decisions individuals, businesses, and governments make to utilize and distribute limited resources effectively. From the everyday choices you make as a consumer to the complex policies that shape global commerce, economics provides a powerful lens for analyzing the world around you.
Reasons to Study Economics
Economics offers a world of opportunities. An economics degree equips you with a versatile skill set that makes you an asset in any career. You’ll develop a keen ability to analyze complex problems, think critically, and make data-driven decisions. These skills, paired with the foundational economic principles you’ll learn in your studies, are particularly useful in fields like finance, business, government, and international development.
From understanding global markets to shaping economic policies, economists play a pivotal role in society. The quantitative and analytical tools you’ll gain will also give you a solid foundation for pursuing a career in data science, risk management, or consulting. Plus, economics can enhance your financial literacy, empowering you to make informed decisions about your personal finances.
Whether you aspire to work on Wall Street, craft policy, advise organizations at the executive level, or start your own business, studying economics can give you a strong competitive edge. It’s a field that combines intellectual challenge with real-world impact.
Economic Systems
Knowledge of different economic systems is key to understanding how societies organize and manage their resources. Each system has unique characteristics that influence how goods and services are produced, distributed, and consumed. Consider the four types of economic systems below and how learning their principles can support a robust educational foundation.
Traditional
Traditional economies rely on customs, beliefs, and historical precedents to guide economic decisions. These systems often involve bartering, subsistence agriculture, and limited technological advancements. While less common in today’s globalized world, understanding traditional economies provides valuable insights into economic anthropology and development economics. An economics degree equips you with the tools to analyze these systems and contribute to sustainable development strategies.
Command
A command economy is where the government calls the shots. In this system, central planners dictate what goods and services are produced, how they’re produced, and who gets them. While the theory aims for equitable distribution and full employment, real-world challenges like inefficiency, lack of innovation, and shortages often arise. Understanding the strengths and weaknesses of command economies is crucial for developing effective government interventions.
Market
Market economies are systems in which the production and distribution of goods and services are primarily determined by supply and demand rather than by government entities. The sentiment behind a market economy is that free competition among businesses and consumers will lead to efficient allocation of resources. This economic model is the foundation of many successful modern economies. Understanding how market forces interact is crucial for anyone studying economics, as it provides a framework for analyzing business strategies, government policies, and global trade.
Mixed
A mixed economy combines market and command economic systems. It allows for private ownership and market competition while also incorporating government intervention to address market failures and promote social welfare. Most modern economies operate as mixed systems, balancing the efficiency of markets with the equity and stability provided by government regulation. Understanding how these systems interact is crucial for businesses and policymakers alike, and a deep dive into economics can equip you with the tools to analyze and influence these complex dynamics.
Careers Paths with a Degree in Economics
An economics degree can lead you to a diverse array of fulfilling and financially rewarding careers. With a strong foundation in economic theory, quantitative analysis, and critical thinking, graduates are equipped to excel in a multitude of professional fields. In fact, a revealing study showed that economics majors tend to enjoy the highest earnings over their lifetime of any major, regardless of industry.
As you embark on your academic journey, a vast range of career paths are available to you with an economics degree. Let’s explore some of the most popular options and their associated earning potential based on data from the Bureau of Labor Statistics (BLS).
Economist
Economists study data and economic trends to understand how resources are distributed and predict future economic conditions. This role involves offering insights and recommendations that can influence decision-making in businesses, government agencies, and various other sectors, making it a career with significant impact and responsibility.
- Median annual wage: $115,730 (as of 2023)
- 10-year growth projected (2022-2032): 6%; faster than average
Financial Analyst
Financial analysts use the skills in their economics toolkit to translate data into investment decisions. They analyze market trends, evaluate company performance, and build financial models to determine investment opportunities. The ability to understand economic principles provides a strong foundation for success in this role.
- Median annual wage: $99,890 (as of 2023)
- 10-year growth projected (2022-2032): 8%; faster than average
Policy Analyst
Policy analysts are the architects of public policy. They use economic principles and data analysis to evaluate existing policies, identify problems, and propose solutions that benefit society. With a strong economics background, you’ll be well-prepared to analyze complex issues and contribute to shaping the future.
- Median annual wage: $128,024 (as of 2022)
Consultant
Consultants, also known as management consultants or management analysts, are problem-solving experts hired by organizations to provide strategic advice and implement solutions. They bring a fresh perspective and specialized knowledge to tackle complex challenges, often working on short-term projects across various industries. Your economics background can be a strong foundation for a consulting career, as it equips you with analytical skills and a deep understanding of business operations.
- Median annual wage: $99,410 (as of 2023)
- 10-year growth projected (2022-2032): 10%; significantly faster than average
Data Analyst
Data analysts, or data scientists, tell stories with data. They transform raw numbers into actionable insights by cleaning, organizing, and analyzing information. An economics background is a major asset to data scientists, giving them the skills to apply an understanding of economic principles to uncover trends and patterns, as well as develop solutions that realize business objectives.
- Median annual wage: $108,020 (as of 2023)
- 10-year growth projected (2022-2032): 35%; much faster than average
Market Research Analyst
Market research analysts use their economic background to study market conditions, consumer behavior, and industry trends to provide useful guidance that helps businesses make strategic decisions. This role involves collecting and analyzing data, preparing reports, and offering recommendations to guide marketing strategies and business development. If you enjoy uncovering patterns and predicting future market movements, this career could be a great fit for you.
- Median annual wage: $74,680 (as of 2023)
- 10-year growth projected (2022-2032): 13%; significantly faster than average
Actuary
Actuaries are financial risk managers who draw on the mathematics aspect of their economics education. They apply statistical and mathematical models to assess future financial risks, helping businesses and insurers make informed decisions. Think of it as using your economic knowledge to predict the future and help your organization protect against uncertainty.
- Median annual wage: $120,000 (as of 2023)
- 10-year growth projected (2022-2032): 23%; much faster than average
Economic Development Officer
Economic development officers work to promote and implement strategies that stimulate economic growth and improve the quality of life in communities. Drawing on economics principles, they analyze local economic conditions, develop policies to attract businesses, and collaborate with various stakeholders to drive sustainable development. If you’re passionate about making a tangible impact on community prosperity and growth, this career could be a rewarding path.
- Average annual wage: $ 74,448 (as of 2024, via ZipRecruiter)
The Role of Economics in Global Issues
An economics education is an indispensable tool for understanding and addressing the world’s most pressing challenges. From climate change and inequality to globalization and technological disruption, economic analysis provides critical insights into the causes and potential solutions of these issues. By examining complex global systems, economists help policymakers and businesses make strategic decisions that promote sustainable growth, social justice, and environmental stewardship.
As the world becomes increasingly more interconnected, the role of economics in shaping our shared future grows ever more important. From studying emerging markets to developing strategies for mitigating climate risk, economists are at the forefront of innovation and problem solving.
Foundation for Graduate School
An economics degree or minor offers a strong foundation for those aspiring to pursue advanced degrees in business or law. Core economic principles – including micro and macroeconomics, econometrics, and game theory – cultivate a strong analytical mindset and hone problem-solving abilities. These skills are highly valued in MBA programs, where understanding market dynamics, financial analysis, and strategic decision-making are paramount. Similarly, law schools seek candidates with a strong quantitative background to excel in areas such as antitrust, corporate law, and regulatory policy.
While an economics undergraduate degree can open doors to various impactful professional roles, many specialized fields within economics – such as economic research, policy analysis, urban planning, and international finance – often require further academic qualifications as well. This makes graduate studies worth considering after earning your degree in economics, regardless of career aspirations.
Study Economics at NU
An economics foundation equips you with an invaluable skill set. You’ll become an adept critical thinker and problem solver with impeccable data analysis capabilities and unparalleled global awareness—a valuable asset at any organization and across all industries.
National University offers a Bachelor of Arts in Management, Economics, a Bachelor of Business Administration (BBA) in Economics, and a Minor in Economics Program to help you take steps toward a rewarding career that makes an impact on the world around you and opens the door to work in a variety of industries. Whether you aspire to lead in business, law, or policy, an economics degree or minor can provide a strong launchpad for your academic and professional journey.