What is Economics?

Economics is everywhere - in the decisions we make, the prices we see, and the news we read. It’s the science that helps us understand how our world works, from the cost of a simple cup of coffee to the global shifts in markets and trade.

If you’re curious about what drives these changes and how people, businesses, and governments make their choices, then it might be time to consider going to study economics.

Economics goes beyond numbers and theories and gives you a lens to view the world, revealing what influences everything from local businesses to international policies. You might be a student excited to learn more about supply and demand or a parent exploring economics summer school options to expand your child’s knowledge.

In this blog, we’ll break down the essentials of economics, explore its main areas of study, and highlight the real-world applications that make it such a valuable field. We’ll also show you how studying economics at Oxford Summer Courses can give you the skills and insights to think like an economist and make a meaningful impact in any career.

What is Economics?

Economics is the study of how people manage resources. It’s about making choices that lead to the best possible outcomes, given the limitations we all face -like time, money, or raw materials.

As Adam Smith, often referred to as the "Father of Economics," famously said, “Consumption is the sole end and purpose of all production.” This means that everything produced is ultimately meant to meet the needs and wants of people.

Economics courses will also teach you how goods and services are distributed and consumed by society. It analyses how wealth is created through work and labour, how it's distributed among people, and how it's eventually spent or saved within the economy.

Economists break down these choices into two main areas of study:

Macroeconomics

This branch focuses on individual consumers, businesses, and their decisions by focusing on national and global economies. It covers topics like inflation, unemployment, economic growth, and how policies impact entire countries.

Macroeconomics examines how supply and demand interact to set prices, how people decide what to buy, and how companies determine what to produce. For example, it helps us understand how policies can stabilise or stimulate an economy during a crisis, like how governments responded to the global economic impact of the COVID-19 pandemic.

Microeconomics

On the other hand, microeconomics zooms in on individuals, businesses, and markets. It explores how people make decisions about what to buy, how much to save, and how companies set their prices.

For example, it explains why the price of your favourite chocolate bar might rise when demand increases or when cocoa prices go up. It’s the study of the smaller parts that make up the economy, helping you understand how supply and demand shape everyday choices.

Why Study Economics?

Studying economics helps explain the world around us. It provides the tools to make sense of the events that shape our lives and the decisions we make every day.

Here’s why you should consider studying economics:

Expand Your Vocabulary

Studying economics introduces you to essential concepts like scarcity (the idea of limited resources), opportunity cost (what you give up to gain something else), and equilibrium (the balance point where supply equals demand).

Learning these terms helps you grasp how markets operate, making it easier to understand economic trends and apply them in real-life situations.

Economics gives you the knowledge to understand how global events impact markets and economies. This includes changes in stock markets, currency fluctuations, or shifts in international trade policies, studying economics.

Economics courses explain how these global shifts can ripple through businesses and communities, influencing everything from the products we buy to the jobs available in the market.

Put New Concepts into Practice

Economic theory plays a crucial role in our daily lives, influencing everything from how we budget our household expenses to the prices we see at the grocery store. It also sheds light on broader issues like taxes, inflation, and interest rates that shape the financial landscape.

Understanding frameworks like Porter’s Five Forces and SWOT analysis can help you make well-informed decisions, from pricing models to maximising your organisation's revenue. These tools empower you to assess situations more effectively and drive better results for your company.

By applying these concepts, you'll be better equipped to make informed financial decisions and adapt to changes in the economy, such as rising mortgage rates or shifts in the job market.

Solving Real-World Problems

Economists are problem-solvers at heart, using their expertise to tackle some of the world’s biggest challenges. From addressing poverty and inequality to finding solutions for climate change and improving healthcare, economists work to create strategies that make a real difference.

They analyse data to identify trends, predict potential problems, and develop policies that governments, businesses, and communities can use to build a more sustainable and fair society.

Techniques like conjoint analysis help measure customer preferences, enabling you to pinpoint what features or products matter most to your audience. This approach can guide you in making data-driven decisions that resonate with consumers.

Predicting Economic Trends

One of the most exciting aspects of studying economics is the ability to predict future trends. Economists use their knowledge to forecast market movements and economic shifts, guiding businesses and governments in making strategic decisions. This foresight is invaluable in areas like investment banking, policy advising, and market analysis.

Making Better Decisions

Studying economics sharpens your critical thinking skills, empowering you to make smarter decisions in both personal finance and larger policy discussions.

You’ll learn about cognitive biases that influence decision-making and understand what happens when people act in ways that defy economic expectations. This knowledge equips you with the tools to predict behaviours and adapt strategies in real-world scenarios, even when people don’t act rationally.

By learning about concepts like Willingness to Pay (WTP) -the maximum amount a person is willing to spend on a product. You can also gain insights into your financial decisions and make smarter choices in your everyday life.

Key Skills You’ll Learn in Economics

Economics goes beyond classroom theories; it’s about personal growth and developing a versatile skill set that you can carry into any career path.

As you study economics, you’ll build the following skills:

Critical Thinking and Analytical Skills

One of the most valuable aspects of studying economics is developing the ability to think critically. You’ll learn how to evaluate data, identify patterns, and assess economic models to make informed conclusions.

For example, you might analyse a country's inflation trends to suggest monetary policies that could stabilise the economy.

Data Analysis and Interpretation

Economics involves working with a lot of data, which means you’ll get comfortable analysing statistics and making data-driven decisions. This skill is essential for roles in finance, research, and business strategy.

Understanding how to interpret graphs and market trends is also key to making investment choices or advising companies on their financial strategy.

Problem-Solving Abilities

Economics challenges you to think outside the box. You’ll learn to identify problems, weigh your options, and come up with creative solutions.

You might be faced with a budget shortfall or trying to predict the impact of a new policy, regardless, you’ll need to think on your feet and come up with innovative solutions that can navigate these challenges.

Understanding Markets and Consumer Behavior

Economic courses help you see what drives consumers choices, what influences demand and supply, and how businesses can best position themselves in the market.

For instance, you’ll learn why luxury brands might lower their prices during an economic downturn to maintain customer loyalty.

Famous Economists and Their Impact

Economics might seem like a maze of numbers and theories, but behind those big ideas are some brilliant minds who’ve shaped how we see the world today. These economists didn't just crunch numbers - they have left a lasting legacy.

Let’s discuss a few of the most influential figures in economic history and see how their ideas still impact our lives today:

John Maynard Keynes | Cambridge University - The Master of Recessions

Ever wondered why governments seem to spend big during economic downturns? You can thank John Maynard Keynes for that! Keynes believed that when the economy hits a rough patch, governments should step in, spend money, and create jobs to get things moving again. His ideas, known as Keynesian economics, are still a go-to strategy for tackling recessions around the world.

Adam Smith | University of Glasgow - The father of Modern Economics

Adam Smith is often called the "Father of Modern Economics," but don't let the title intimidate you. He’s the guy who came up with the idea of the "invisible hand" - the concept that when people look out for themselves, they end up helping society too (even if they don’t mean to!). His ideas laid the groundwork for free markets, which means every time you buy your favourite snack or new gadget, you're playing a part in the economy, just like he predicted!

Milton Friedman | Rutgers University - The Free-Market Guru

Milton Friedman was a big believer in the power of free markets. He championed the idea that the less the government meddles in the economy, the better. His theory of monetarism taught us that controlling the money supply is key to keeping prices steady and economies stable. Friedman's ideas are still a big deal today, influencing everything from interest rates to how much you pay for that morning coffee.

The Big Ideas That Changed Everything

These economists weren’t just thinkers - they introduced ideas that continue to shape the way we live, work, and make decisions in today's world:

• Keynesian Economics: John Maynard Keynes proposed that during tough economic times, governments should actively invest in the economy to create jobs and stimulate growth. This approach is still widely used today to help stabilise economies during downturns.
• Classical Economics: Adam Smith’s ideas focused on free markets and competition. His work laid the foundation for how businesses operate, influencing the choices we have as consumers and driving innovation in the marketplace.
• Monetarism: Milton Friedman emphasised the importance of controlling the money supply to manage inflation and keep the economy stable. His theories still guide central banks around the world in setting interest rates and regulating money flow.

Future Careers in Economics

If you decide to study economics, it opens the door to a wide range of exciting career paths where you can make a real impact.

Below is a list of some of your career opportunities:

Economic Analyst

Step into the role of an economic analyst, where you’ll be the detective piecing together data to reveal the bigger picture. Analysts use their understanding of market trends to guide companies and governments in making strategic moves, helping them stay one step ahead in a constantly changing world.

Financial Consultant

Guide a company through its biggest growth phase or help a family secure their financial future. As a financial consultant, you’ll use your expertise to craft investment strategies, optimise budgets, and make financial planning accessible to everyone.

Policy Advisor

Have you ever wanted to make a real difference in society? As a policy advisor, you’ll work directly with governments and organisations to design policies that tackle critical issues like economic inequality, climate change, and healthcare reform. Your recommendations could shape national strategies and improve lives in your community.

Investment Banker

This fast-paced career is all about helping businesses and investors make the right financial decisions. You’ll be advising on mergers, acquisitions, and investment opportunities that can transform companies and even reshape entire industries.

Economic Researcher

For those who are naturally curious and love to dig into the ‘why’ and ‘how,’ becoming an economic researcher is a perfect fit. Researchers delve into complex data to uncover trends and develop theories that can change the way we think about markets and economies. Your findings could influence how companies operate or guide governments in creating better economic policies.

Governmental Roles

Economics graduates often play crucial roles within the public sector. You could become an economist for a government agency, contributing to economic forecasts, analysing public spending, or helping to design policies that promote sustainable growth.

Why Choose Oxford Summer Courses?

One of the things that makes Oxford Summer Courses unique is the flexibility of our curriculum. Unlike traditional programmes, our tutors aren’t tied to a set curriculum. This means they can adapt the course content to suit the preferences and interests of the students attending. Students will have the opportunity to discuss their learning goals with admissions, and we’ll do our best to tailor the course accordingly to ensure a personalised experience.

For younger students (ages 13-15), our teaching methodologies focus on Seminars and Small Group Learning. In Oxford and Cambridge, students participate in interactive seminars and small group sessions that challenge them intellectually and help them refine critical thinking, research, and presentation skills. Through expert guidance and collaborative learning, students gain the support they need to excel.

For students aged 16-24, our courses follow a Tutorial-style Teaching model. This method encourages independent thought, academic exploration, and lively debates in small group seminars. Tutorials provide personalised feedback, helping students develop their ideas and arguments, preparing them for success in higher education and beyond.

Conclusion

In conclusion, Oxford Summer Courses offers an engaging and comprehensive journey into the world of economics for students of all ages. Our programmes are designed to do more than just teach economic theories -they aim to inspire curiosity and encourage critical thinking, allowing you to see how these principles apply to real-world challenges.

With a combination of interactive seminars, hands-on projects, and personalised tutorials, you’ll build essential skills like data analysis, problem-solving, and strategic decision-making. Our approach ensures that you not only understand the core concepts of economics but also learn how to apply them in everyday life, preparing you for a range of future careers.

Beyond the classroom, you'll have the chance to experience life in the historic settings of Oxford and Cambridge, making new friends and connecting with like-minded individuals from around the globe. With a supportive community and experienced tutors to guide you, you’ll find yourself growing both academically and personally.

Whether you’re looking to kickstart your journey as an economist or simply explore the subject’s impact on the world, Oxford Summer Courses provide the perfect environment to expand your knowledge and skills.

For more details on how to apply, course dates, and pricing, visit our application page. If you have any questions, our FAQs and friendly team are always ready to assist you. The world of economics is waiting - let’s explore it together!

Apply to Study Economics

We offer economics courses in Oxford for ages 13-24 and in Cambridge for ages 13-15. Each of our courses has a limited number of places available, and they tend to sell out quickly. Once they are full, no further places will be available. Submit your application as soon as possible to ensure you don’t miss the opportunity to study economics with an award-winning summer school. Apply today!

FAQs about Economics

1. What is economics, and why is it important? Economics helps us understand how resources are distributed and the factors that influence these decisions, shaping our daily lives and global policies.
2. How can studying economics help my career? It equips you with analytical and critical thinking skills that are highly valued in fields like finance, consulting, and research.
3. What skills do I need for a career in economics? Key skills include data analysis, problem-solving, and a deep understanding of market dynamics.
4. How does studying economics connect with finance and business? Economics forms the basis for understanding financial markets, consumer behaviour, and the decision-making processes that drive businesses.
5. What are the real-world applications of economics? Economics is used to address challenges like unemployment, inflation, and environmental sustainability, making it a crucial field for societal development.