Careers in Economics
| Author | Wendy Rinholen |
| Pages | 84-87 |
Page 84
Economists study how society uses, regulates, and distributes its natural and human-made resources such as land, labor, raw materials, and machinery to produce goods and services (Horizons, 2000). In simpler terms, they study how effectively society meets its human and material needs. Economists also study how economic systems address three basic questions: What shall we produce?; How shall we produce it?; For whom shall we produce it? They then compile, process, and interpret the answers to these questions (Economists, 2005). Economists may analyze the relationship between supply and demand and develop theories and models to help predict these future relationships. They help provide a logical, ordered way of looking at various problems. They attempt to explain social concerns such as unemployment, inflation, economic growth, business cycles, tax policy, or farm prices. Most economists apply their skills to solve problems in specific areas, such as transportation, labor, heath, finance, marketing, corporate planning, energy, or agriculture. Business firms, banks, insurance companies, labor unions, governmental agencies, and others seek advice from economists to use in their decision making.
Theoretical economists, employing mathematical models, develop theories to examine major economic phenomena, such as the causes of business cycles or inflation or the effects of unemployment, energy prices, or tax laws. Most economists, however, concern themselves with the practical application of economic policy to such areas as finance, labor, agriculture, health, and transportation (Harkavy, 1999). Although there is a wide range of careers open to economists, there are three main career paths: business, government, and academia. Each type of economist applies the economic approach to decision-making in a different setting.
Business economists work in such areas as manufacturing, mining, transportation, communications, banking, insurance, retailing, private industry, securities and investment firms, management consulting firms, and economic and market research firms, as well as trade associations and consulting organizations (Careers, 2001). Many private firms, both large and small, recruit undergraduate economics majors for jobs. These jobs are general-purpose ones for which employers seek bright, highly-motivated students who can learn a specific business through on-the job training. To become a professional business economist requires graduate training. Business economists perform such tasks as forecasting the business environment, interpreting the impact of public/governmental policy on the firm, and collecting and processing data. They also supply information to management that affects decisions on the marketing and pricing of company products, as well as providing long- and short-term economic forecasts ("Economics," 1997). For example, a business firm's managers might ask its marketing analysts to provide specific information on which to base marketing and pricing policies. Using econometric modeling techniques, the analysts develop projections of market reactions to various price levels throughout the industry. On the basis of these projections, the mangers can make informed pricing decisions. Informed, rational decision making on economic matters is what economics is all about.
Government economists work for federal, state, and local governments in a wide variety of positions involving analysis and policy making. The federal government is a major source of employment for economists with an undergraduate degree; information about job openings in various agencies is available from the Federal Employment Information Center. A bachelor's degree in economics is a good qualification for an entry-level position; a person can advance to higher positions by obtaining a graduate degree or by promotion from within. There are jobs for labor, international, development, and population economists, as well as micro- and macroeconomists (Careers, 2001). Economists who work for government or private research agencies assess economic...
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