Importance of Economics: Today economics is more useful than any branch of knowledge because it makes human welfare its direct and primary concern.
Following are the main components of economics importance
Useful for the Producer
Economics is very useful for the producer. It guides him that how to should combine four factors of production and minimize the cost of production.
Useful for the Consumer
The consumer can adjust his income and expenditure on various goods in a better way if he knows the principles of economics.
He will spend his income according to the law of Equi-Marginal utility in order to get maximum satisfaction.
Poverty and Development
It helps in removing poverty from the country. Underdeveloped countries are facing many problems like unemployment, overpopulation, low per capita income, and low production.
Economics is very useful in solving these problems.
Useful for the Leaders
Its study is helpful for the leaders to understand the economic condition of the country. Political leaders can easily tackle economic problems if they have a knowledge of economies.
Useful for the Finance Minister
Finance Minister prepares the yearly budget of the country. Economics guide him that how he should frame the tax policy.
Useful for the Distribution of National Income
From the study of economics, one can easily judge that how the income should be distributed among the four factors of production.
For this purpose, marginal productivity theory is suggested by economics.
Useful for the Businessman
A businessman can learn the principles of a business organization. He will be able to plan his business well and tackle his problem successfully.
Importance for a Common Man
Knowledge of economics is very useful for every citizen. It enables him to understand and criticize the economic policies adopted by the government. He can also guide the government.
In the modern age, the importance of economic planning cannot be ignored. Through planning, we can utilize our natural resources in a better way and can improve our economic condition.
Important for Labor
It guides the labor that how they can get maximum wages from the employer.