University of Tasmania, Australia

Why study economics?

Economics is the study of exchange—of how institutions can be structured to promote cooperation and reduce conflict.

It’s fun

One economist recently combined a lifelong passion of pirates with that of economics to explain the incentive structure that supported seventeenth and eighteenth century piracy. Did you know that pirates had workers’ compensation? Another economist fuelled a love of history with economics to explain the social role of duelling in Napoleonic Europe.

It’s intellectually stimulating

Ever wondered why:

• Public debt is bad
• There is pollution
• Some countries are underdeveloped
• What causes inflation
• Why the Australian dollar is so volatile

They say curiosity killed the cat. But economics can satisfy such curiosity in a much less painful way.

Economic Knowledge

Economics can equip you with the skill set to make purposeful decisions in the stock market or the bank when obtaining a mortgage.

Jobs, Jobs and Jobs

There are many job opportunities for economics graduates. To be sure, there are no guarantees in life except death and taxes--economics will not guarantee you a high-paying job but it will offer you a better prospect of gaining a good position than other specific programs.

The rate of return to an Economics degree has risen over time from 11.6 per cent in 1986 to 17.6 per cent, in the base case scenario. Perhaps more importantly Economics has far outstripped its nearest rival, Business, and overtaken its (often thought of) more prestigious alternative Law. There are clearly well paid jobs for those with an Economics degree and demand has held up over a period of falling supply.

^{Philip Lewis, Anne Daly & Don Fleming Why Study Economics? The Private Rate of Return to An Economics Degree. the Centre for Labour Market Research DISCUSSION PAPER SERIES 04/5, p. 10}

Useful Mode of Thought

Economics offers a distinctive and useful way of thinking. Economics teaches one to identify unintended consequences. Unintended Consequences? Here’s two examples. Why does raising tax revenue reduce the desirable level of government expenditure? Why did the measures taken after September 11 to make plane travel safer from terrorists increase fatalities from road accidents?

Complements other fields of Study

Since economic structures are a principal element in social, political and civil society, an understanding of economics is an important ingredient for the mastery of other fields such as;

• Law
• History
• Political science
• Philosophy
• Sociology
• Geography
• Environmental management
• Anthropology