Why Study Economics? 12 Real-World Reasons
Economics is one of those subjects you’ve probably come across, without realising it. If you’ve ever wondered why supermarket prices rise, why rents change from one area to the next, or why the Bank of England puts interest rates up and down, you’ve already started to think like an economist.
At its heart, economics is about how people, businesses, and governments make choices when resources like time, money, and materials are limited.
So, why study economics? Because it helps you make sense of the world and gives you practical skills you can use in everyday life and in your future career.
It teaches you how to weigh up evidence, spot patterns in data, and explain complex issues clearly. All of which are skills employers value across industries, from business and finance to public services and tech.
Here we break down what economics really is, the biggest benefits to studying it, what you’ll learn and where it can take you.
What is economics?
Economics is the study of how we make choices when we can’t have everything we want.
It sounds simple, but it explains a huge amount of everyday life, because nearly everything involves:
- Scarcity: there’s a limited amount of time, money, staff, housing, energy, and resources.
- Choice: when resources are limited, choosing one option usually means giving up another.
- Incentives: people respond to rewards and consequences (prices, rules, deadlines, discounts, penalties)
- Trade-offs: the ‘cost’ of a decision is often what you miss out on by choosing it (your opportunity cost).
Economists don’t just ask what happened, they ask why it happened, what might happen next, and what choices could improve things.
What economics is not
Myth 1: Economics is just about money
Money is part of it, but economics is really about decisions and consequences, including health, education, crime, climate change, inequality and technology.
Myth 2: Economics is only for maths geniuses
Yes, economics uses numbers, charts and data, but it’s also about clear thinking and good explanations. You’ll build confidence step by step, and a lot of the skill is learning how to reason, not just calculate.
12 reasons to study economics
1. Understand the world (and the headlines)
Economics helps you make sense of the stories behind the news: interest rates, strikes, wage growth, energy prices, housing shortages, and government budgets.
How you’ll practise this while studying:
You’ll learn to connect real events to economic ideas so you can explain why something is happening, not just repeat the headline.
2. Make better personal decisions
Economics trains you to think in trade-offs. That’s useful for everyday choices like choosing a phone contract, deciding whether to borrow, or working out whether a ‘deal’ is actually good value.
How you’ll practise this while studying:
You’ll use real-world scenarios to compare options, consider hidden costs, and judge value beyond the price tag.
3. Build employer-loved analytical thinking
Economics teaches a certain way of thinking: define the problem, identify the incentives, weigh evidence, and reach a balanced conclusion. That kind of structured thinking is a big reason employers value the subject.
How you’ll practise this while studying:
You’ll regularly break down messy problems into clear steps and justify your answer with reasoning.
4. Learn data confidence
In real life, people use statistics to persuade. Economics helps you ask, What’s the source? What’s missing? Is this correlation or causation? That’s a powerful skill in study, work, and everyday life.
How you’ll practise this while studying:
You’ll interpret graphs and data, practise drawing careful conclusions, and learn how to challenge weak evidence.
5. Open doors to lots of careers, not just an economist
Economics is widely recognised and flexible. It can lead towards roles in finance, risk, data, government, consulting and more, including jobs directly related to economics and jobs where it’s a strong advantage.
How you’ll practise this while studying:
You’ll build transferable skills (analysis, decision-making, communication) that apply across many job routes.
6. Stand out in competitive fields
Economics can help you stand out if you're aiming for competitive industries because it demonstrates your ability to manage both complex decisions and evidence.
How you’ll practise this while studying:
You’ll tackle case-style questions, practise structured arguments, and learn how to support points with data.
7. Understand markets and business strategy
Ever wondered why cinemas charge more for popcorn, why subscriptions are everywhere, or why one firm ‘undercuts’ while another goes premium? Economics explains pricing, competition, and why businesses behave the way they do.
How you’ll practise this while studying:
You’ll analyse market explanations, explore how competition works, and apply models to real business choices.
8. Study big issues that matter
Economics gives you a way to explore the biggest questions shaping society: climate policy, living standards, global supply chains, inequality, and the impact of new technologies.
How you’ll practise this while studying:
You’ll evaluate different solutions, compare trade-offs, and learn to argue for policies using evidence.
9. Get a subject that combines well with others
Economics works brilliantly alongside maths, politics, business, psychology, geography, history, and more, because it sits between numbers and real-world behaviour.
How you’ll practise this while studying:
You’ll make links across topics (like behaviour, incentives, and public policy) and learn to view problems from more than one angle.
10. Gain communication skills
A big part of economics is taking something complicated – inflation, rents, taxes, or market failures- and explaining it clearly and fairly. That’s valuable in almost any job.
How you’ll practise this while studying:
You’ll practise writing clear explanations, using key terms correctly, and building arguments that flow logically.
11. Learn how policy affects real lives
Economics helps you understand what governments can and can’t do, and what the trade-offs usually are. Policies can affect lives intentionally and unintentionally, having this knowledge can be key.
How to put this into practice while you're studying:
You will examine policy case studies, consider advantages and disadvantages, and practise formulating well-rounded, fact-based recommendations.
12. Make your skill set future-proof
It doesn’t matter what sector you work in, you’ll be trained in skills that help you to reason clearly, take note of evidence and make smart decisions.
How to put this into practice while you're studying:
You'll develop a skillset that includes asking perceptive questions, testing theories against data, and confidently communicating conclusions.
Why study economics?
From the prices you pay and the wages you receive to the daily decisions made by businesses and governments, economics helps you understand how the world operates. It teaches you to think clearly, evaluate the evidence, and articulate your ideas coherently.
Economics is a wise choice whether you're interested in business, finance, public services, or just want a subject that develops practical decision-making abilities.
Study economics with the Distance Learning Centre and their flexible way of learning, explore our online economics courses, see what you’ll learn, and choose the level that suits you.
