Economics is regarded as the most practical business subject and is the study of how people manage limited resources such as money to meet their goals. By understanding the reasons why people spend their money in certain ways, economists can try to introduce incentives to their change their behaviours.
As a discipline, Economics is divided into two broad catagories:
- Microeconomics considers how individual people decide what goods they are willing to buy or not buy based on maximising their personal 'utility' (getting as much benefit as possible from their money), and how firms and businesses will try to take advantage of consumers' habits to maximise profit. It also examines how multiple businesses in a market will price their goods based on their compeditors and their various costs.
- Macroeconomics then considers how governments handle the economy as a whole, and how they select policies which meet their goals, such as stable economic growth (avoiding recessions), minimising the national debt, and encouraging employment. How the government handles issues such as fiscal policy (how much money flows in the economy), international trade, and banking all have implications for economics stability and growth.
What kind of student might Economics suit?
- Anyone considering a future career in any area of business, journalism or finance.
- Students who enjoyed Junior Cert Business.
- Students who take an interest in politics, current affairs, or psychology.