Thinking Like An Economist

Thinking like an Economist Name Institutional Affiliation Thinking like an Economist Thinking like an economist entails understanding economic terms, concepts and how they can be applied. Business programs rely on economic concepts to explain ideas. Following this, it is important for a student studying business to think like an economist. This paper looks at some of the benefits that a business student will derive from ‘thinking like an economist. Among them include expanding new vocabulary, understanding practical applications, understanding forces of demand and supply as well as general awareness of how to apply economic tools. These students will be able to understand the professional world in terms of industries. Additionally, economics enables an individual to understand complex markets and gain analytical and problem-solving skills. Expand Vocabulary Economic concepts will train a business student to see things differently; they will view scarcity as limited resources, equilibrium as the price where demand equals supply and opportunity cost and what that must be forgone to achieve something else. Understanding how the market works requires fluency in fundamental terms found in economics as a discipline. Students will be able to picture how these terms apply in organizations and understand market dynamics. Practical Applications Learning economics and thinking like an economist equips business people with viable business strategies. Economists are familiar with theories like SWOT analysis and Porter’s Five Forces. These are frameworks that will help a business student analyse situations in the business world. In doing so, they are able to ...