Why the study of economics is necessary?

At present, the study of economics is very much important in our life. The necessity of the study of economics is discussed below:

1. Necessary in everyday life of a man: In everyday life man faces lot of wants. But the means of satisfying wants are very much limited. The activities regarding limited wealth with the unlimited wants which are to satisfy is the necessary to satisfy is the subject matter of economics. The knowledge of economics is necessary to satisfy unlimited wants through the uses of limited resources.

2. Proper Utilization of wealth: Economics gives way to make best utilization of limited resource. We can know from the study of economics how to maximize output of the limited resource and how human welfare can be maximized.

3. Economical: Economics show how an individual can be economical. Human wants are unlimited. But resources are limited. To satisfy human wants a man has to be economical.

4. Field of production: The knowledge of economics is essential for production. The knowledge of what to produce, how much to produce, what method should be adopted can be understood from the study of economics.

5. Trade and Commerce: The knowledge of economics is essential. The market demand of a commodity, the future change of the current demand, and this type of economic knowledge helps to maintain trade successfully. Therefore, the trader or merchants must have the knowledge of economics.

6. Social problem: Most of the social problems are closely related with economic problems. The problems of poverty, unemployment, illiteracy, labor welfare etc. For the proper solution of these social problems the knowledge of economics is must.

7. For labor leader: The leader who deals with labors should have adequate knowledge in economics, in order to conduct labor organization and for their claims.